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The magician shows two cut out rabbits one White and one Black.
They are covered with two covers, the White Rabbit going into the cover with a White Hat and the Black Rabbit into a cover with the Black Hat. The covers are moved around, and the rabbits are found to have exchanged places.
This is repeated a number of times, and the audience believes they have caught you out.
They inform that the rabbits are White on one side and Black on the other, and you are merely turning them around to change places.
Finally you turn the two rabbits around, and show that they are not Black and White as the audience believes, but entirely different colors for example, they could either be Red and Green.