A double displacement reaction occurs when the ions of two compounds exchange places to form two new compounds. This reaction usually takes place in aqueous solutions and results in the formation of a precipitate, gas, or water.
Example:
\[
\text{BaCl}_2 + \text{Na}_2\text{SO}_4 \rightarrow \text{BaSO}_4 \downarrow + 2\text{NaCl}
\]