Term: Proxy Bid

"Proxy Bid" in auction terminology refers to a bidding method where a bidder authorizes someone else, or a system, to bid on their behalf. In online auctions, this is often managed automatically by the auction platform. A bidder sets a maximum amount they are willing to pay for an item, and the system places bids in response to competing bids, adhering to the set bid increments. The proxy bidding system will continue to bid on behalf of the bidder until the maximum set amount is reached. This method allows bidders to participate in the auction without having to continuously monitor the bidding progress, and it helps maintain a level of privacy for their maximum bid amount. Proxy bidding is particularly useful in scenarios where the bidder cannot be present or actively involved during the entire auction duration.