The Standard Bidding format allows a Bidder to place a Limit Bid (aka Proxy Bid or Maximum Bid) for the maximum amount they are willing to pay for an Item. When a Limit Bid (greater than the Current Bid) already exists on an Item, the system will automatically Counterbid, as dictated by the Bid Increments, on behalf of the Limit Bidder, in his/her absence, up to the Limit Bid amount. This approach helps eliminate the need for the Bidder to continuously monitor the item and/or manually Counterbid each time he/she is out bid.

When a new Limit Bid is placed, which is less than the existing Limit Bid, the High Bid is only increased by the minimum amount (as dictated by the Minimum Raise rules at the new Limit Bid level) required to keep the "limit Bidder" in the lead. In cases where a new Limit Bid exceeds the amount of an existing Limit Bid, the new High Bid will be calculated based on the lesser of the following, i)the sum of the existing Limit Bid and the Minimum Raise at the level of the existing Limit Bid, or ii)the new Limit Bid. Please see the examples below for further details regarding the bidding process.

Example 1: (first bid limit)
Assume there are NO bids on an item and the minimum bid is $100. Since there is NO Minimum Raise required for an item with no bids, Bidder A must bid at least $100. If Bidder A places a Limit Bid of $130 then the High Bid will be $100 with Bidder A the High Bidder. Note that Bidder A has a $130 Limit Bid and therefore "owns" all bids up to $130 if any additional bidding occurs.

Example 2: (existing limit exceeds new limit by more than Minimum Raise)
Assume the current High Bid on an item is $100 and is held by Bidder A with a Limit Bid of $150. If the Minimum Raise is $10, then Bidder B must bid at least $110. If Bidder B places a Limit Bid of $120 then the High Bid will increase to $130 ($120 new limit + the $10 Minimum Raise) with Bidder A remaining as the High Bidder. Note that Bidder A still has a $150 Limit Bid.

Example 3: (existing limit exceeds new limit by less than Minimum Raise)
Assume the current High Bid on an item is $100 and is held by Bidder A with a Limit Bid of $150. If the Minimum Raise is $10, then Bidder B must bid at least $110. If Bidder B places a Limit Bid of $145 then the High Bid will increase to $150 ($145 new limit + the $5 remaining on the existing Limit Bid) with Bidder A remaining as the High Bidder.

Example 4: (existing limit exceeds new limit by the Minimum Raise)
Assume the current High Bid on an item is $100 and is held by Bidder A with a Limit Bid of $150. If the Minimum Raise is $10, then Bidder B must bid at least $110. If Bidder B places a Limit Bid of $150 then the High Bid will increase to $150 ($150 existing limit) with Bidder A remaining as the High Bidder.

Example 5: (new limit exceeds existing limit by more than Minimum Raise)
Assume the current High Bid on an item is $100 and is held by Bidder A with a Limit Bid of $150. If the Minimum Raise is $10, then Bidder B must bid at least $110. If Bidder B places a Limit Bid of $180 then the High Bid will increase to $160 ($150 existing limit + the $10 Minimum Raise at the existing limit level) with Bidder B as the new High Bidder. Note that Bidder B will now have a $180 Limit Bid and therefore "owns" all bids up to $180 if additional bidding occurs.

Example 6: (new limit exceeds existing limit by less than Minimum Raise)
Assume the current High Bid on an item is $100 and is held by Bidder A with a Limit Bid of $150. If the Minimum Raise is $10, then Bidder B must bid at least $110. If Bidder B places a Limit Bid of $155 then the High Bid will increase to $155 ($150 existing limit + the $5 available on the new limit) with Bidder B as the new High Bidder. Note that in this case Bidder B meets the initial Minimum Raise requirement, but is NOT required to exceed the existing Limit Bid amount by the Minimum Raise at that level.

Example 7: (new limit exceeds existing limit by the Minimum Raise & existing limit >= minimum bid)
Assume the current High Bid on an item is $100 and is held by Bidder A with a Limit Bid of $110. If the Minimum Raise is $10, then Bidder B must bid at least $110. If Bidder B places a Limit Bid of $120 then the High Bid will increase to $120 ($110 existing Limit Bid + the $10 Minimum Raise) with Bidder B as the new High Bidder.

Example 8: (new limit exceeds existing limit by the Minimum Raise & existing limit < minimum bid)
Assume the current High Bid on an item is $100 and is held by Bidder A with a Limit Bid of $105. If the Minimum Raise is $10, then Bidder B must bid at least $110. If Bidder B places a bid of $115 then the High Bid will increase to $115 ($105 existing limit + the $10 Minimum Raise at the existing limit level) with Bidder B as the new high Bidder.