When dealing with bids for ‘Live Auctions’, we employ the “Dutch Auction Model” where the final price per share gets determined as the highest price at which the total listing can be completed. The final price per share is the lowest of all the highest bids which allow the auction to complete.
- For every listing, after all the bids are submitted and the ‘Auction Period’ ends, our system gathers all standing bids and orders them by price.
- The final price is set as the minimum allowing all the shares to be allocated.
This means that the shares are assigned to bidders from the top order down, until all available shares are assigned. However, the price which each bidder pays is based on the lowest price of all the allotted bidders, or essentially the last successful bid. Therefore, even if you bid €5000 for 200 shares (which translates to €25.00 per share), if the last successful bid is €20.00 per share, you will only have to pay €4000 for the 100 shares you wish to acquire.