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I thought I understood this, but re-reading the rules I’m not so sure. In some places it states that you can use a reaction if you have not used your action this round. But that does not mean you can’t have had your turn and just opted not to use your action. Or should it really say ‘turn’ not action here and the only way to bank your action to use as a reaction is to ‘wait’ and swap your turn with a higher initiative card? Up until now I have let players move on their turn and choose not to act, saving it in case they want to react later in the round.

You can only do a reaction if you haven't used up your turn yet (i.e. flipped your initiative card) and you loose your movement when you do a reaction. Although reactions like parrying and dodging give you some special movement. When you have done your reaction, you flip your initiative card, meaning your turn is over for the round.

If you have a low initiative card and don't want that, because you want to parry or dodge, then you have to wait, there is no saving your action for later in this game and again, you loose your normal movement if you do a reaction (but you do get some parry or dodge movement instead).

All this is explained on p.42-43.

Thanks that’s clear now. I think my misunderstanding comes from the rules using the word Action rather than Turn. I know it says “you cannot perform a reaction if you have already had your turn and performed an action” but that doesn’t say I can’t take my turn and not use my action (eg just move and do nothing else). It might seem a bit nitpicking but there is an opening there for misinterpretation that I felt needed to clarify. So in reality then the rule is: you cannot perform a reaction if you have already had your turn (regardless of whether you used your action or not). The ability to perform a reaction has nothing to do with whether you have used your action but whether you have taken your turn. So the only way to keep your action for a reaction is to delay your turn until after the opponents. Thanks for the clarification.

With risk of simply mudding the waters further:

In order to make a parry or dodge possible later in the round, is it enough to say "I do nothing" at your turn, or do you have to swap initiative cards wth someone further down in the queue?

If it is the former, do you flip your card or not when you say "I do nothing"?

With risk of simply mudding the waters further:

In order to make a parry or dodge possible later in the round, is it enough to say "I do nothing" at your turn, or do you have to swap initiative cards wth someone further down in the queue?

If it is the former, do you flip your card or not when you say "I do nothing"?

If you want to act later in the round, you have to await someone that is later. Could be an NPC, a PC or a monster.

:
In order to make a parry or dodge possible later in the round, is it enough to say "I do nothing" at your turn,

This was my reading of it but now understand this to be incorrect (thanks Fenhorn). You have to wait to parry/dodge later in round which means swapping initiative cards with a character/NPC/monster. Then when your turn comes up and you use your action to parry/dodge you then flip your card. Of course by then you may decide to use your action for something else if there is no need to react.