eBay- Bidding overview
Everyone wants to win, but only at the right price. Bidding for items is fun, but keep in mind that each bid you make is a binding contract to buy the item if you win.
We suggest that you bid the maximum amount that you're willing to pay for an item, and let our system incrementally increase your bid for you, as necessary.
As the listing proceeds, we compare your bid to those of other bidders. When you're outbid, we automatically bid on your behalf up to your maximum bid. We increase your bid by increments only as much as necessary to maintain your position as highest bidder. Your maximum bid reflects the amount you're willing to pay for an item, but you could end up paying less.
Our max bidding (also called automatic
bidding) system makes bidding convenient so you don't have to keep coming back to re-bid every time someone places another bid.How max bidding (or automatic bidding) works
When you place a bid, you enter the maximum amount you're willing to pay for the item. The seller and other bidders don't know your maximum bid.
We place bids on your behalf using the automatic bid increment amount, which is based on the current high bid. We increase your bid only as much as necessary to make sure that you remain the high bidder, or to meet the reserve price, up to your maximum amount.
If another bidder places the same maximum bid or higher, we notify you so you can place another bid. Your maximum bid is kept confidential until it is exceeded by another bidder.Source: pages.ebay.com.au