Trade equity refers to the value of a property that a seller is willing to accept in exchange for their property, often in the form of another property. For example, if a seller owns a property that is worth $500,000 and they are looking to buy a new property that is also worth $500,000, they can use the equity in their current property as a trade-in towards the purchase of the new property, effectively using the equity in their current property as a down payment on the new property. This type of transaction is also known as a property swap or property trade.