How Bidding Works

Here we would like to provide some information on how our software works. This is no rocket science, so don't be intimidated! A few practical hints:

• Don't leave everything till the last minute - make sure that you have a user name and password and make yourself familiar with the auction before you decide to bid!
• When you see somebody raising his bid again and again, this usually means that the high bidder has a proxy, which is being challenged by another bidder. The top bidder's name stays in the system, which may make it look like he is bidding against himself.

Definitions:

Reserve price - a price, below which the lot will NOT sell (unless seller agrees to let it go at lower price later). Auction administrator sets this price on behalf of the seller. This price is always kept secret from the bidders, but there is a sign at the page where the lot is listed, saying 'reserve has not been met'. Once somebody bids equal or more than the reserve is, the sign 'reserve has been met' appears.

Current bid - the highest bid at present. It is displayed on the top of the list and must be beaten by a bid increment.

Bid increment - a minimum sum, which the bidder has to add to the current bid in order to become the highest bidder.

Minimum bid - a bid, which is required form a bidder in order to beat the current bid and become the top bidder, so the formula is: min. bid = current bid + increment.

Starting bid - minimum bid at the beginning of the bidding. Auction administrator sets starting bids.

Proxy bid - maximum amount, which a bidder is prepared to pay. It is set by the bidder and kept by oursoftware, which bids on the user's behalf. The proxy bid is kept secret from other bidders. You can raise your proxy later, if you wish so.

Bidding without proxies:

1. A lot is posted either with or without reserve price. A starting bid is specified.
2. User1 sends his minimum bid. The system checks that the bid is correct and then it posts it. User1 becomes the highest bidder and the system posts the next minimum bid, calculated as starting bid + bid increment. When somebody bids that amount, he becomes the top bidder.
3. If the lot does not have a hidden reserve price, the highest bidder will buy the lot.

Bidding with proxy bids:

You can specify what you are prepared to pay for a particular lot - and let our software bid on your behalf. Note that you may get the lot for less than your proxy bid was. It is essential to understand how proxy bidding works at our auction.

1. User1 sends his proxy bid (proxy1). The system checks:

1. That the bid is not less than the minimum bid (otherwise it will no accept it!).
2. If there is no reserve, the system posts the proxy at the minimum bid level.
3. If there is a reserve, the system checks whether the proxy is equal or bigger than the reserve. If this is the case, user1's bid is posted at the level of the reserve (it jumps to the reserve level). If the reserve is bigger than the proxy, the system posts the bid at the level of the minimum bid.

2. User2 sends his proxy bid (proxy2). The system verifies that it is bigger or equal than the minimum bid. Then it checks whether there is a reserve, which has not been met.

1. If there is such a reserve, and the proxy bid of user2 is equal or bigger than it, then proxy2 jumps to the reserve level.
2. If the reserve has been met or is bigger than both existing proxies, then the system will compare proxy1 and proxy2.

There are two possible scenarios:

1. Proxy1 is equal or bigger then proxy2. Then the current bid is posted at the level of proxy2 and User1 (who has proxy1) becomes the highest bidder at that level - the bid is on him. For example, if both proxies are equal, the one who came first wins - this is the advantage of putting in your bids early.
2. Proxy2 is bigger then proxy1. Then the current bid is calculated as the smaller of the two: proxy2 or proxy1 + the increment.

Example 1. User1 (with proxy1 of 70 euro) has the current bid at 60 euro (the system does not tell others that his real max. bid is 70 euro!). The minimum bid now is 66 euro. User2 with proxy2 of 69 euro steps in. His proxy is bigger then 66 euro (minimum bid), so it is compared with proxy1. Proxy1 is bigger, so user1 becomes the highest bidder (has the current bid) at 69 euro.

Example 2. User1 (with proxy1 of 70 euro) has the current bid at 60 euro. The minimum bid now is 66 euro. User2 with proxy2 of 71 euro steps in. His proxy is bigger then 66 euro, so it is compared with proxy1. Proxy2 is bigger, so user2 becomes the highest bidder (has the current bid) at 71 euro (which is smaller than proxy1 + the increment).

Example 3. User1 (with proxy1 of 70 euro) has the current bid at 60 euro. The minimum bid now is 66. User2 with proxy2 of 78 euro steps in. His proxy is bigger then 66 euro, so it is compared with proxy1. Proxy2 is bigger, so user2 becomes the highest bidder (has the current bid) at 77, which is proxy1 + the increment. This number is smaller then proxy2.