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Learn the ART of Proxy Bidding
Proxy bidding is an automated bidding system used in auctions to help bidders stay competitive without manually placing bids. It allows a bidder to set their maximum bid amount, and the system will automatically place incremental bids on their behalf, only as much as necessary to maintain their position as the highest bidder, up to their maximum limit.
Here's how proxy bidding works:
Set Maximum Bid: The bidder enters the highest amount they are willing to pay for an item.
Automatic Bidding: The system compares the bidder's proxy bid against others and automatically places the smallest possible increment to outbid competing bids.
Stops at Maximum: If another bidder exceeds the proxy bidder's maximum, the system stops bidding on their behalf.
Win or Lose: If no one outbids the proxy bid, the bidder wins the item at the current bid amount, which could be lower than their maximum bid.
Example:
You place a maximum bid of $100 on an item.
The current bid is $50, with increments of $5.
If someone bids $55, the system will place a bid of $60 on your behalf.
This process continues until you either win the item or someone exceeds your $100 maximum.
Benefits of Proxy Bidding:
Convenience: No need to constantly monitor the auction.
Budget Control: You won't accidentally overspend since the system respects your maximum limit.
Fair Competition: Bids are placed incrementally, ensuring you only pay as much as necessary to stay the highest bidder.
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