Swap
A swap is an agreement between players in a tournament to exchange a percentage of each other's winnings. It reduces variance, because both players share in the other's success.
The simple explanation
Two players who agree to a 10 percent swap each pay out 10 percent of their winnings to the other and receive 10 percent of the other's. If one cashes and the other does not, the winner shares part of his prize.
A closer look
Swaps are common among friends and professionals. They are a way to reduce risk without selling shares. The terms must be clear: the percentage, whether it is based on gross or net winnings and how to settle up. Because both players have equal shares, the swap is fair only if the players are equally skilled, or one of them pays a markup. It differs from staking, in which one person pays the buy-in.
A practical example
Doug and Ryan agree to a 10 percent swap in a $10,000 event. Doug wins $100,000, and Ryan wins nothing. Doug pays Ryan $10,000.
Full explanation
A swap is an agreement between players in a tournament to exchange a percentage of each other’s winnings. It reduces variance, because both players share in the other’s success.
A swap is an exchange of shares of tournament winnings between two players.
It lowers the risk of both players.
The terms should be agreed in advance.
It is different from staking.