> For the complete documentation index, see [llms.txt](https://docs.tipo.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tipo.io/tipo-auction/auction-rules-and-bidding-features/automatic-bidding.md).

# Automatic bidding

### ℹ️ What Is Automatic Bidding?

**Automatic bidding,** also known as Proxy bidding lets a bidder set a maximum bid amount.\
The system then automatically places bids for them to keep them in the lead, without needing to bid manually each time.

This makes bidding easier and more competitive.

* The bidder sets a maximum amount they are willing to pay
* The system bids on their behalf
* Bids increase only when someone else places a bid
* The bidder never pays more than their maximum bid

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### 🛠️ Set up Automatic bidding

**Steps to manage**

 1\. Open the app > click **Auctions** > create a new auction or open a current auction

 2\. In **Additional** **options** sessions, turn on **Automatic bidding** checkbox

 3\. Click **Save**

<figure><img src="/files/08kkblMyjZwWsozi96zt" alt=""><figcaption></figcaption></figure>

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### ✅ How the Automatic bid works&#x20;

1. A customer enters a **maximum bid amount**
2. The system places the **minimum required bid**
3. When another bidder places a bid, the system automatically raises the bid (based on **Minimum bid increase**)
4. This continues until:
   * The maximum bid amount is reached, or
   * The auction ends

[<br>](https://tipo.io/wp-content/uploads/2021/12/Screenshot_82.png)Here is an email sent to bidder who places automatic bid:

<figure><img src="/files/pRpyl7ZnhRk7p1iVvCJB" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/4c7EikHy3HRbFvhqBBpr" alt=""><figcaption></figcaption></figure>

#### Example: Automatic Bidding in Action

Auction settings

* Current bid: $100
* Minimum bid increase: $10

Step 1: First auto-bidder

* Customer A sets a maximum bid of $200  (automatic bidding amount)
* System places a bid at $110

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Step 2: Another bidder joins

* Customer B places a manual bid of $130
* System automatically bids $140 for Customer A

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Step 3: Maximum reached

* Customer B bids $200
* Customer A’s maximum is reached
* Customer B becomes the highest bidder

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**What Happens at Auction End?**

* If the highest bidder used automatic bidding: They win at the lowest possible price needed to stay ahead
* Winner checkout follows the normal winner flow.&#x20;

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### 📚 Related documents

[Prevent Auto Bid from Overriding Manual Bid at the Same Amount](https://docs.tipo.io/tipo-auction/auction-widget-and-storefront-display/auto-bid-vs-manual-bid#prevent-auto-bid-from-overriding-manual-bid-at-the-same-amount)

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