It's actually a lot simpler than it seems. Example: The Clippers owe their 2017 1st rounder to the Raptors thanks to a past trade. That pick is protected, 1-14, which means if it anywhere between or equal 1 through 14 in the draft order, the Clippers get to keep it.
If the pick is 15th, the Raptors gain ownership.
Top 5 works in a similar manner, as does top 3.
The swap rules are a little more confusing, but that's mostly how 2K worded it. Basically, "Swap Best" means that the team with the "Swap Best" pick will get the higher of the two team's draft picks.
An example of this is the Celtics -- they have "Swap Best" rights with the Nets, which means whichever 1st round draft pick is higher in the draft AKA is in the lottery, or top 10, or top 5, etc, the Celtics get that one and the Nets -- since they have the "Swap Worst" option in this trade -- get the worst AKA lower of the 1st rounders.
So, if the Nets have a horrible year, the Celtics will exchange their draft pick with the Nets, meaning the Celtics get the much higher draft pick in the top 10 (likely) and the Nets get a draft pick in the bottom 10 (likely).
2K could have worded it better. I use this site to read up on trades like that, it's remarkably helpful in keeping it all straight.
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