A reciprocal link is an agreement between two webmasters to provide a hyperlink within their own website to each other's web site. Generally this is done to provide readers with quick access to related sites, or to show a partnership between two sites. It is also called two-way link that involves a link to your site from an external source and a link from your site back to the external source.
Reciprocal links can also help increase traffic to your web site in two ways. First you will probably have some viewers visit your site from clicking the reciprocal link directly. Secondly, most Internet search engines also take into account the number and quality of web sites which contain links to your web site; the more hyperlinks found on your site, the higher the ranking it will get from search engines (depending on the search term or keywords).
To have a clear definition of a reciprocal link, consider the diagram shown above. You will notice that every site has an incoming link (a link pointing to your site represented by a red arrow) and an outgoing link (a link that points to other site represented by a blue arrow).
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