Listia uses a proxy bidding system, which means the system only bids as much as it needs to in order for you to be the top bidder, up to the limit you placed.
For example, assume there is a listing with a start bid of 1 PTS with no bids.
- Auction high bid is 1 PTS
- User A bids 5 PTS and becomes the high bidder
- Auction high bid is 1 PTS
- User B bids 2 PTS and is still not the high bidder
- Auction high bid is 2.5 PTS (add minimum bid increment)
- User B bids 10 PTS and becomes the high bidder
- Auction high bid is 5.5 PTS (add minimum bid increment)
Even though User A did not actively bid against User B, the system knows that their maximum bid is 5 PTS and bids against User B automatically.
Placing a bid early can have great advantages. You can set the most you'd want to bid on an item so you don't bid more than you feel it's worth. If it goes over that bid, then you know it's being overpriced. It also helps when listings result in a tie. If the listing ends and two users bid the same amount, whoever placed the bid first will be the winner.
When you bid on an item, the listing holds all of the funds you used until you are outbid or the listing ends, so planning when to bid is important. It's possible another item you want to bid on is ending soon, but your funds are being held by other listings.
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