How Proxy Bids Are Calculated

The proxy bidding process uses the two proxy bid controls you defined (Proxy Decrement and Proxy Minimum) and the current best bid to determine which new bid value to submit on your behalf.

How Proxy Bids Are Calculated

When you submit your initial bid amount, you can enter a number as your proxy decrement. The application considers this as either a fixed amount or as a percentage of the current best bid. Either way, this is the amount used by the application when calculating your next bid price. You also declare the proxy minimum amount, which functions as the floor below which you do not bid.

Proxy Bidding Scenario

In the following example, your initial bid is $1000 with a proxy decrement value of 10% and a proxy minimum amount of $500.

The following table shows how a proxy bid is updated during the course of a negotiation.

Competing Bid	Your Proxy Bid
$995	$895.5 ($995 reduced by 10%)
$763	$686.7 ($763 reduced by 10%)
$660	$594 ($660 reduced by 10%)
$540	Proxy bids no longer submitted because they would drop below your proxy minimum of $500.