This glossary explains the core auction terms bidders and auction operators most often need to understand. Use it as a quick reference, then follow the related links for fuller explanations of live, timed, hybrid, and sealed-bid formats.
An opening bid is the first bid accepted on a lot when bidding begins.
It marks the point at which bidding starts and may also be referred to as a starting bid in some auction contexts.
A reserve price is the minimum amount the seller is willing to accept for a lot to be sold.
It is one of the most important trust terms in any auction because it helps define the minimum sale threshold even where that amount is not publicly disclosed.
An online preview is the period before bidding opens, or before a live sale begins, when lots can be viewed and assessed.
It gives bidders time to review catalogue information, compare lots, and prepare before the auction becomes active.
A soft close is a timed-auction closing mechanism where a bid placed shortly before a lot is due to close automatically extends that lot’s closing time. This is also known as popcorn bidding.
The purpose is to prevent last-second sniping by ensuring that if bidding activity occurs within the extension window, the system adds time to the countdown and gives other bidders the chance to respond.
Cascading lot closing is a timed-auction structure where lots close sequentially and later lots continue to move back when an earlier lot is extended.
It is useful because it describes how the closing sequence itself behaves during active bidding, rather than simply describing a fixed closing schedule.
A quick bid is the next valid bid shown by the platform based on the current price and increment rules.
It allows a bidder to submit the next accepted bid quickly without manually entering a custom amount.
A power bid is a bid placed at a specific amount that moves the current bid immediately to that level, rather than treating the amount as a maximum bid.
It gives bidders a faster way to bid decisively at an exact amount and may also be described in some sectors as a straight bid or hard bid.
Buy-it-now is a fixed-price purchase option that allows a buyer to secure a lot immediately without waiting for the standard bidding process to continue, provided the lot still qualifies for that option.
It works as an optional rule rather than a replacement for auction logic, and its availability depends on how the lot and sale have been configured.
Bid increments are the predefined steps by which bidding increases from one accepted bid to the next.
They are a core structural term because increments shape pace, bidder confidence, and price discovery during the sale.
A lot is the individual item, asset, or grouped set of items offered for sale as one unit.
A lot may be a single object, a property, a vehicle, a collection, or a grouped set of assets depending on the auction context.
Hammer price is the final accepted bid price before buyer’s premium, taxes, fees, or other charges are added.
It is important to distinguish hammer price from total price paid, because the winning bid may not represent the full amount due.
A maximum bid is the highest amount a bidder authorises the system or auctioneer to bid on their behalf. This is also commonly known as a proxy bid.
The bidder sets a ceiling, but the final accepted price may still be lower if smaller increments are enough to keep that bidder in the lead.
A manual close is a governance rule where bidding can end or submissions can be captured, but the result remains pending until an authorised operator reviews the bid history and manually approves the winning bidder.
This is especially useful in hybrid, tender, and sealed bid scenarios where the platform may need to consider more than price alone before the winner is confirmed.
An offer in an auction is a proposal made during or after the sale process at a specific amount and, in some cases, with specific bidding conditions attached.
Unlike a standard bid, an offer may include terms such as cash-only purchase, no finance, or other conditions that affect how the seller evaluates the proposal. In some auction models, especially where manual close applies, an offer may be considered differently from the current bid when deciding the best overall outcome.
Auction terms and conditions are the rules that govern registration, bidding, reserve, fees, payment, buyer and seller obligations, and the legal effect of a successful bid.
This is not just legal housekeeping. It is the rulebook that gives the auction credibility. A definition page should explain terms and conditions as the operating framework of the auction, not merely a checkbox.
