> 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/~/revisions/3uOn584ZFy41DoorDGbA/faqs/how-automatic-bidding-works.md).
# How Automatic bidding works
The **Automatic Bidding** feature helps customers stay in the auction without constantly watching or manually placing new bids.
It works like a "set it and forget it" system. Once enabled, the system automatically bids for the customer until their **maximum bid limit** is reached.
### What Is Automatic Bidding?
**Automatic bid,** also known as **Proxy bidding**
**Automatic bid** occurs when bidders have the option to set a maximum price that they would be willing to pay for an item and then allow the computer system to bid for them by the bid increment until someone places a higher bid than their maximum.
The bid increment is pre-set by the auction and is the amount that a proxy bid must increase by.
Once you set up automatic bidding, you can stay ahead of the competition for an item without needing to be on the online store.
### How to set up Automatic bid in our app?
**Steps to manage**
1\. Open the app > click **Auctions** > create a new auction or open a current auction
2\. In **Advance setting** sessions, tick to **Automatic bid** checkbox
3\. Click **Save**
### How the Automatic bid works on the front store?
* When customers place an **Automatic Bid**, they simply enter the maximum amount they are willing to pay and click the **"Automatic Bid"** button on the auction widget.
* The system will automatically place bids **on their behalf**, increasing in set increments. We will only bid as much as needed to keep them in the lead, up to their maximum limit.
* If another bidder places a higher bid, and it exceeds their maximum, the customer will receive an email notification.
* They can then choose to increase their maximum bid if they still want to win the auction.
[ ](https://tipo.io/wp-content/uploads/2021/12/Screenshot_82.png)Here is an email sent to bidder who places automatic bid: