I am curious how trade exceptions work. I feel like I am getting a good grasp on alot of the intricate salary cap rules but I dont know if I understand the trade exception well. Here are a couple thoughts I have on it

1) When 1 team trades a player for a pick the team that trades away a player gets a trade exception?

2) And when that team gets a trade exception, they can then take on a player's contract from another team by using the trade exception and also send the trade exception to that other team.

I honestly dont think I understand it correctly. Help me out here.