The working mechanism of Auction Marketplace

An auction marketplace is an environment for buying and selling products and services. It matches buyers and sellers as per their bids and offers respectively. Buyers face competition in multiple bids whereas sellers present competitive offers. This competition settles down when the seller’s lowest acceptable price and buyer’s highest payable price make a match for any stock, service, or product. There are many enterprisers and sellers looking for a reliable marketplace. One such marketplace provider is https://auction.io/

The procedure is totally different from what you see in the case of the OTC market where we find direct negotiation between the involved parties.

In auction marketing, the workflow is as follows:

 

• The buyers put bids as per their desirable monetary instrument that is going on in the market. 
• On the part of sellers, they offer their best products and services according to their comfortable monetary instrument.
• Now that both sides are ready with their bids and offers, the price of that stock is decided as per the lowest price which is called the asking price that a seller could accept and the highest price, called the bid price which the buyer could pay.
• This price becomes the current market price for that stock.
• The further processing of this executed order will be settled as per exchange rules.
• If in case the asking price and bid price stay unmatched, then that order remains unexecuted and pending.

This process of setting the market price is done through this order marching.

Types of auctioning:

There are different types of auctions as well that you can propose in your platform like:

• Increment auction- every time the current highest bid is exceeded, there is an increase in the auction bid
• Reserve price auction- seller sets fixed prices which buyers cannot see but can bid. When the price is matched, the highest bid gets the auction.
• Automatic auction- the system automatically bids for the buyers who set their highest amount. 

Auctioning is easy in auction marketplaces. You need a platform that can provide tools for easy selling and marketing with proper analysis for your business. You never regret visiting https://auction.io/ for your upcoming auctioning.