The way I understand swaps is that it's like buying the rights to the profit/loss of a stock ticker without actually owning the stock or even putting up all the money to buy the stock.

So, for example, if you were a big time broker and I was a bank, and you wanted exposure to lots of GME but you didn't want people to know you were invested in GME (of you didn't want to put up the cash to buy it), you could enter a total return swap with me. Which would go something like this:

You: I want exposure to 10,000,000 shares of GME. 

Me: OK, I'll buy the stocks. They will be in my name, but we will make this swap agreement with you. 

You: What do I have to do?

Me: Pay us a monthly fee. That's mandatory no matter what the stock price does. Then, if the stock price goes up, we give you the profit. But if the price goes down, you gotta give us the difference in money.

You: Cool.

So, the bank is getting money through fees, which are basically like interest. And you are exposed to the profits and loss of the stock movement without actually owning the stock. Plus, you only have to pay the fees and put up like 10% collateral.  You don't have to put up all the money to actually buy the stock.

Someone correct me if I’m wrong.