A proxy bid is the highest amount you are willing to pay for an auction item. In response to other bids, the auction system will automatically increase your bid in the smallest increment possible (up to your proxy bid amount) in order to maintain your lead position.

To get a proxy bid you simply enter the maximum amount you are willing to pay into the bid form just as you would any other bid. If your bid is more than one bidding increment above the current high bid you will get a proxy bid unless another bidder has a proxy bid in place that is higher than the amount you enter.

At the end of the auction, the winning bidder pays only the lowest winning bid possible. That means that you can win an auction item at a price less than your proxy bid amount.

Your proxy bid amount is kept confidential from other bidders.

Note: After watching hundreds of auctions and talking to thousands of bidders, we think using proxy bids in your bidding strategy works best for most people. It elminates some of the pressure and reduces the risk of "sniping", where other bidders slip in slightly higher bids in the last seconds of bidding.