It's called PROXY BIDDING Benn;
How Bidding Works
(this process is called proxy bidding)
Let's say you find something on eBay that you want... You're willing to pay $25.00 for it, but the current bid price is only $2.25. You could take the long route and sit at your computer, outbidding each new bid until you reach $25.00.
Luckily, there's a better way. Here's how it works:
Decide the maximum you're willing to pay and enter this amount.
eBay will now confidentially bid up to your maximum amount. In this way, you don't have to keep an eye on your auction as it unfolds.
If other bidders outbid your maximum at the end of the auction, you don't get the item. But otherwise, you're the winner--and the final price might even be less than the maximum you had been willing to spend!
Remember: eBay will use only as much of your maximum bid as is necessary to maintain your position as high bidder. Winning was never easier!
So if the item starts at say, 99p, and you bid £25, the current visible bid is still 99p. If the auction has 20p increments, the next bidder needs to enter £1.20 or more. SO they put in £5. Immediately the bid rises to £5, but your still winning. Why? Cos your max bid was higher than theirs. So that guy bids £6. Bidding goes to £6, your still winning. It will do this untill someone bids more than £25, which was your top bid.
Most poeple think that if you bid £25 for something an win then you have to pay the full £25. You don't, you only have to pay what someone else has bid it up to. So if you bid £25 and someone else bids £6 and there's no more bids and the aution finishes, you win the item for £6.
Of course it is dangerous as two can play at proxy bidding. I know someone who bid £3000 for a TV or something. Was only worth £150 max, but decided to whack in a whopping great bid so he couldn't be out bid. Sadly someone else thought they would try that aswell and bid £2000. So of course the bid jumped to the £2k, and this guy was left with a winning bit of £2k for a TV worth £150. And ebay bids are legally binding contracts
He didn't pay of course, but nearly went to court over it