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The grand exchange is kinda like a market place.
Theres a bank and then the grand exchange, and you can go and place an item you wnat to sell on the grand exchange. If someone in a different world or is someone wants to buy the item that you have put on the grand exchange it does all the work and sells it. You can select a price. E.g. bronze bars on the grand exchange are givin a pricing range of 34gp - 37gp [Estimate, not entirely sure] You can then sell them for those prices. If you want to buy, you type in what item you want, quantity and how much you are willing to pay, add the money then you wait until someone puts that item on the grand exchange, and it does all the work :)
Its a quick and easy way to make money!
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Its great for questing, Anything you need, you get it all at one place! Same with clues! Its great. Good idea, but only thing i dont like are the limits, Eg, 4k arrow heads per 4 hours. Stupid.