|
Open outcry auctions are a particular form of online bidding which gets its name from the way that stocks and shares are bought and sold on stock exchanges across the world. In share exchange circles, the term open outcry is used to describe the way that traders on the stock exchange floor communicate with each other in the buying and selling process. It is the name given for the very unique way in which traders on the floor, or "pit", communicate with their colleagues who do the buying and selling of stocks. This communication method involves shouting as well as the use of hand signals and coded messages to get their information to their colleagues without other parties knowing what is being said. In a similar way to this, the term "open outcry" is now also used to describe what most people would think of as a common auction. The similarities between the two processes are vast. If you set aside for the time being the online bidding world and instead consider for a moment a traditional physical auction house, you may begin to see the correlation between the two. Both involve large numbers of traders all bidding and competing to get their hands on certain stocks and goods at a particular value. If the bidding price goes too high then one by one the traders will drop off and move onto a different stock or lot. The move to online bidding in recent years has largely kept to these same principles. Whether online or offline, potential buyers and bidders will converge to take it in turns to bid on items as they come up for sale in the auction. The auctioneer, or website which is hosting the auction, will kick things off by suggesting an opening bid price from which they would like the auction to start. Auctioneers can, on behalf of sellers, place a reserve amount on their auction lots to prevent the item from being sold for a price which they deem too low given the products current market value. This is in fact a commonly employed tactic throughout online bidding and physical auctions alike, as it helps to ensure that they receive all the benefits of an auction process, but without any of the risk associated with it. All interested parties will then take it in turns to raise their hands - or in the case of online bidding, click their mice and tap their keyboards - in order to raise the current bidder. Eventually as the price increases, interested parties will gradually start to drop out of the bidding process. This will continue until only one bidder is left in, and there are no remaining interested parties willing to beat his or her current bid. These types of auctions, no matter whether they are conducted as online auctions or traditional physical auctions in an auction house, are sometimes also known as "English Auctions". At BidGrid unique bid auctions you can get new items for big discounts. The auctions are very exciting and offer you the chance to pick up great products with zero risk. Find out more at here
Related Articles -
auction site, auction sites, online auction, online auctions, bidding, bidding sites, online bidding, online bidding sites, pay per bid, pay per bid sites,
|
