Proxy Bid:
A Proxy bid is the maximum dollar amount you are willing to bid for a specific lot. The system automatically bids up to that amount on your behalf against competing bidders (if any).
EXAMPLE: You enter a "Max Proxy Bid" amount of $500 when the lot's reserve is met and the high bid is $100. Your Proxy Bid automatically raises your bid to the next minimum bid amount, which in this example is $125, and thus makes you the current high bidder. When a competing bidder bids $150, the system again automatically places a next increment bid of $175 for you, making you the high bidder again. If a competing bidder bids again, proxy bidding continues until your "Max Proxy Bid" of $500 is exceeded by a bid from a competing bidder. If your high bid is not exceeded by the end of the Auction, then you win the lot.
ADVANTAGES: Should your schedule prevent you from participating near the closing of an Auction, your "Proxy Bid" quickly bids on your behalf. Also, when your and a competing bidder's proxy bids are of equal amount ($500 in the example) at the end of the Auction, your bid wins, because you entered your $500 "Proxy Bid" amount first.