Sell Action

Meaning and Usage

Sell action is a common practice in high-stakes poker and tournament circuits where players raise funds by selling shares of their potential winnings to backers or other players. The seller (the player) receives a lump sum or a fraction of the buy-in from the buyer (the backer), and in return, the backer is entitled to a corresponding percentage of any winnings the seller earns in the event.

Typical Scenario

A player entering a $10,000 buy-in tournament may not want to risk the entire amount themselves. They might sell 50% of their action for $5,000. If they win $100,000, the backer receives $50,000 (minus any pre-agreed markup or stake fees). If they lose, the backer loses their $5,000 investment.

Markup and Terms

Often, the seller charges a markup (e.g., 1.2x) to compensate for their skill advantage. For example, selling 50% at 1.2 markup means the buyer pays 50% of the buy-in times 1.2, effectively paying $6,000 for a 50% share of a $10,000 buy-in. This is common for successful players.

Reasons to Sell Action

• Risk Management: Reduces variance and financial exposure.
• Bankroll Management: Allows players to enter events above their usual limits.
• Community and Networking: Builds relationships with backers and other players.
• Funding Multiple Events: Enables players to play several tournaments simultaneously.

Reasons to Buy Action

• Investing in Skilled Players: Backers can profit from a player's edge without playing themselves.
• Entering High-Stakes Action: Small investors can participate in big games.
• Supporting Friends or Stables: Common in poker staking arrangements.

Ethical and Practical Considerations

Clear agreements are essential, specifying the markup, percentage, payout structure, and whether the deal is for the entire tournament or a specific portion. Most deals are informal but often documented via poker tracking sites or contracts. Conflicts can arise if the seller sells more than 100% (overselling) or if results are disputed.

Related Terms

• Staking: Providing funds to a player in exchange for a share of winnings.
• Action: A player's financial interest in a poker game.
• Markup: The premium charged by a player when selling action.
• Makeup: A staking arrangement where losses are carried forward.
• Sweat: To watch and support a player in whom one has invested.

In summary, sell action is a financial tool in poker that allows players to manage risk and bankroll while giving backers a chance to invest in skilled players' performance.