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Q. |
Does placing a Proxy mean that I have to pay the highest amount I put in? |
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A. |
No, the proxy is the highest you are willing to pay. The system will only place the next available bid up until your proxy amount. At the end of an auction, if you are the highest bidder, you are the winner. As the winner of the auction, you only pay the lowest possible winning bid, not necessarily your maximum bid.
If you place a proxy bid and at the end of the auction, the current highest bid states "Reserve not yet met, if your proxy bid is higher than the reserve, you will win this item at the reserve price (not at your proxy bid amount). The proxy bid you set is the highest amount that you are prepared to pay, so if it is at or over the reserve, and is higher than any other bidder, the system will process this amount.
An example is -
A member is selling a product with a reserve of T500
The highest bid currently states T100 Reserve not yet met, and the next acceptable bid is T110
Bidder A sets a proxy at T750
No one else bids
Bidder A will win the item at T500 which is the reserve price as the buyer has stated they would pay up to T750 for the item |