- Category: Auction Knowledge
- Published: Thursday, 12 October 2017 10:18
- Written by Data
- Hits: 2280
What is a proxy bid?
Here are a few terms that you must also be familiar with to understand Proxy bid:
- Current Bid – The leading bid that is currently placed
- Minimum bid – the minimum bid amount that can be placed on a koi at any given time; this is typically set to a specific increment, for e.g. $10. If the Current Bid is $100, then for someone to Counter Bid they must meet the minimum Bid which will be the Current Bid plus the increment of $10.
Now that we know what these terms are, then what is the proxy? Have you ever Bid $20 on an item and were prepared to pay $40 but just because you were not available to monitor you lost out because someone Bid $25? This heartache is solved with the Proxy Bidding function which is like your Bidding Robot.
In auctions, you will notice that the bid you place can be any amount equal to or greater than the minimum bid. If you place a bid that is greater than the minimum bid this will be considered as a proxy bid. You will notice that the current bid will still only increase by the $10 increment higher than the Current Bid although you placed a higher Proxy bid. Only you will be able to see what proxy bid you have placed.
For e.g. If the current bid for a koi is $100, and you bid $150, then the new Current bid is $110, you will then see that you are the lead current bidder with a bid of $110 but have a proxy bid of $150.
Why is all this useful? Proxy bidding ensures that you will get the koi for the least amount possible since you can now win the Koi for $110 even though you bid $150, and since competitors may bid, for example $120 afterward, your Proxy bid will automatically place a counter bid of $130. Only when the competitor Bids $160 would you be outbid. This allows for you to Bid the maximum you are prepared to pay for a koi but get it for the lowest price possible in the auction which would be in this case $10 more than whatever a competitor bid against you, up to the value of your Proxy Bid.
When your proxy has reached its maximum, it will no longer be able to automatically bid up when new bids are placed. At this point, you can place a new bid, which can either be just the minimum bid or another proxy bid.