# A Proxy Bidding Example
Many people are familiar with proxy bidding from websites such as eBay which use it in their auctions. See Proxy Bidding for setup and Proxy Bidding Rules to learn more about its rules and limitations.
# Placing Proxy Bids
When a bidder is placing a bid for an online item, either directly on the website or in Kiosk Mode, they have the option to make the bid an Automatic proxy bid.
In this example, the item does not have a current bid but the starting bid for the cruise is $2,000. The bidder is willing to bid up to $4,000 for the item but would clearly prefer to pay less, if possible.
In a traditional silent auction, they would start their bidding at $2,000 and periodically check to see if they have been outbid by someone else. They could still do that in this case, but since they know they are willing to go up to $4,000, they choose to place a Proxy bid for the $4,000 amount instead.
They enter the full amount on the page and click the blue Bid! button.
The confirmation dialog shows that they are now placing a Proxy bid.
The feedback for the bid shows that they are currently the high bidder with a bid of $2,000, and their bid will be raised to $4,000, if necessary.
The information about the proxy bid is only included because they are the high bidder. Any other bidder viewing the page will not see this information.
Another bidder sees the page and decides to place a bid for $2,500 on the item.
This bid will not succeed as it was below the $4,000 Proxy bid in place for the item (even though the second bidder could not see that). The system will raise the first bidder's bid up to $2,500 and the new minimum bid for the item will become $2,600.
When the first bidder looks at their My Account page they will see the current high bid for the item.
The Proxy bid amount is only seen by the bidder. It cannot be seen from the dashboard.
Not wanting to lose out, the second bidder decides they are willing to go up to $4,500 for the item and place that as their Proxy bid.
This bid succeeds because it is above the $4,000 bid placed by the first bidder. The second bidder's bid is now at $4,100 which was the minimum needed to beat the $4,000 bid.