automated Maximum bid or 5minute extension.
Dear Moderators,
Looking to improve the bid process for better market operation. Do let me know your thinking. My humble suggestion below.
In Ebay, a bidder after bidding 1 price, can set the maximum price that are willing to bid in case they are outbidded. Are there plans to implement this?
This would benefit sellers so that althou the bidder maybe outbidded when he is away, the auto mechanism will help him be the top bidder.
Since AF disallow doublenicks, there is little chance of abuse of seller trying to push up price and buy back fish if price below expectations.
This will also prevent the phenomenom of last minute bidders when there are no bids for 6hours.
An alternative is if there are new bidders in the last 5minutes before official closing, the auction is automatically extended by 5minutes. This is slightly closer in spirit to the SGX way whereby the last minutes of trading the prices, buyers and sellers are brought together to prevent last minute support for certain stocks that cause the index or a certain stock to fluctuate wildly. Some companies used to do this to make their performance look good for financial year end closing.
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