automatic bidding

can someone please explain automatic bidding. I thought I understood it but evidently not.

 

I thought that for an automatic bid to be made, the member first had to place an ACTUAL BID????

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automatic bidding

Does it make any difference anyway as the reserve has not been met? I would avoid anyway as the seller obviously hasn't a clue, (or less likley they are a scammer) as they are offering Paypal and COD (cash on delivery) as well as bank deposit as payment methods with no mention of cash on pick up

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