It's where data in memory goes when you run out of RAM. It's much slower than RAM, but reduces the need to have shitloads of RAM on hand.

swap = S = swapped in

swap space n.

Storage space, especially temporary storage space used during a move or reconfiguration. "I'm just using that corner of the machine room for swap space."

--The Jargon File version 4.3.1, ed. ESR, autonoded by rescdsk.

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