What is a proxy bid?

A proxy bid is a type of bid where the bidder enters the maximum amount they are willing to pay for an item. The bidding system then automatically bids on the bidder's behalf, incrementally increasing the bid by small amounts until the auction reaches the maximum amount set by the bidder.

Proxy bids are commonly used in online auctions, such as those on eBay, as they allow bidders to set their maximum bid and then let the system automatically bid for them, saving them time and effort in monitoring the auction.

Proxy bids are also used in traditional live auctions, where bidders submit their maximum bid to the auctioneer in advance, and the auctioneer then bids on their behalf during the auction.

Overall, proxy bids can be a convenient way for bidders to participate in auctions without having to constantly monitor or actively participate in the bidding process.