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Calculating
the current bid price and winning bidder
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When you bid on an auction you have the choice of placing a set bid value (bypass proxy bidding), or allowing free2auction to place
proxy bids up to a set limit for you.
How proxy bids are calculated
By default free2auction uses a proxy bidding
system to calculate the best possible price for an auction buyer.
The current bid price, and ultimately the final auction sell
price is calculated each time a bid is placed by finding the
second highest bid value, and adding the currency increment
onto this, the highest bidder will become the current winner bidder.
When placing a proxy bid you enter the maximum value
you are prepared to pay, which must be higher than the current bid. If your maximum value is higher than any other
bidders, you will become the new winning bidder,
if your bid is lower than another users bid the current price
will rise to an increment higher than your bid.
currency increments
bid calculation example
If the auction has a reserve price
If an auction has a reserve price, and a user
enters a maximum proxy bid below the reserve, the current price
will rise to the users bid and they will be notified they
have not yet met the reserve price. If a user places a maximum bid
over the reserve price the current price will rise either to the
reserve price or the second highest users bid plus the currency increment,
whichever is highest.
reserve price example
Multiple quantity auctions
Multiple quantity auctions have their own method
for calculating the current price and winning bidders. learn
about multiple quantity auctions
Canceling bids
When you enter a bid on an auction it is considered binding.
You cannot cancel this bid, however if for any reason you
do not feel you will be able to fulfill your obligations as
the buyer, you can contact the seller and request that they
cancel your bid, it is up to the sellers discretion whether
they do so.
Bid calculation example
A user starts
a USD auction at $12, there is no current bid until user1
places a maximum bid at $27 using proxy bidding, the current
price remains $12 and if the auction ends now user1 will win
the auction at $12. If before the auction ends user2 bids
$19, the current price will rise to $19.25 (user2's bid + currency
increment), user2 will be informed that they did not meet
another users maximum bid, and if the auction ends now user1
will win the item at $19.25. However user2 really wants this
item and makes a maximum bid of $60, the current bid price
rises to $27.25 (user1's bid + currency increment) and now user2 will
be the winning bidder at $27.25.
Reserve price example
A user starts a USD auction
at $12, with a reserve price of $21. User1 places a maximum
bid at $17 using proxy bidding, the current price rises to
$17 but user1 is notified that their bid has not met the reserve price.
User2 bids $19, the current price rises to $19 and user2 is
notified they have not yet met the reserve price. Now user2
makes another bid at $23, the current price rises to the reserve
price, $21, and the auction has met reserve, if it ends
now user2 will be the winner at $21. But user1 comes back
and places a bid for $35, the current price rises to $23.25 (user2's
bid + currency increment) and user1 is the winning bidder at this price.
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