What is online auction?

Minimum bid – The smallest opening bid that will be accepted.

A minimum bid can be as little as USD$0.01 (one cent) depending on the auction.

If no one bids at the initial minimum bid, the auctioneer may lower the minimum bid so as to create interest in the item.

The minimum bid differs from a reserve price (see definition), in that the auctioneer sets the minimum bid, while the seller sets the reserve price (if desired).

"New money" - a new bidder, joining bidding for an item after others have bid against each other.

No reserve auction (a/k/a "absolute auction") – an auction in which there is no minimum acceptable price; so long as the winning bid is at least the minimum bid, the

seller must honor the sale.

Outbid (also spelled "out-bid" or "out bid") – to bid higher than another bidder.

Opening bid – the first bid placed on a particular lot. The opening bid must be at least the minimum bid, but may be higher (e.g., a bidder may shout out a

considerably larger bid than minimum, to discourage other bidders from bidding).

Paddle - a numbered instrument used to place a bid[65]

Protecting a Market - when a dealer places a bid on behalf of an artist he or she represents or otherwise has a financial interest in ensuring a high price. Artists

represented by major galleries typically expect this kind of protection from their dealers.[65]

Proxy bid (a/k/a "absentee bid") – a bid placed by an authorized representative of a bidder who is not physically present at the auction

Proxy bids are common in auctions of high-end items, such as art sales (where the proxy represents either a private bidder who does not want to be disclosed to

the public, or a museum bidding on a particular item for its collection).

If the proxy is outbid on an item during the auction, the proxy (depending on the instructions of the bidder) may either increase the bid (up to a set amount

established by the bidder) or be required to drop out of the bidding for that item.

A proxy may also be limited by the bidder in the total amount to spend on items in a multi-item auctio

Relisting - re-selling an item that has already been sold at auction, but where the buyer did not take possession of the item (for example, in a real estate auction, the

buyer did not provide payment by the closing date).

Reserve price – A minimum acceptable price established by the seller prior to the auction, which may or may not be disclosed to the bidders.[65]

If the winning bid is below the reserve price, the seller has the right to reject the bid and withdraw the item(s) being auctioned.

The reserve price differs from a minimum bid (see definition), in that the seller sets the reserve price (if desired), while the auctioneer sets the minimum bid.

Sealed bid - a submitted bid whose value is unknown to competitors