It's all well and good to horde loot for yourself, but sometimes you want to share. Besides, who knows? Maybe your friend has a piece of gear that'll complete your set of armour and in so doing, complete your very soul.
In Torchlight II, it's very easy to trade loot with other people in your multiplayer game. It's all very casual and handshake-based, which feels in line with the game's generally relaxed attitude towards multiplayer. (This is, of course, one of the big differences between Runic's game and the auction house-based Diablo III.)
In the video above, fellow Kotaku-ite Jason Schreier and I do some quick trading between our two engineers. Obviously, Jason's level teensomething and I'm level fortysomething, so our loot is… a touch lopsided. (More on lopsided multiplayer play later).
But really, it's that simple. Click on the person's avatar and click "trade", and then haggle out the particulars on your own.