Cut Bid

A cut bid is a bid that is only half the normal bidding increment and is permitted in some auction houses. It can be a tactical method to influence the bidding competition, but should be used in accordance with the rules of the auction house. The use of cut bids may be handled differently by auction houses. Some auction houses accept cut bids as valid bids and take them into account when determining the highest bid. Other auction houses may only allow cut bids once per lot and bidder. The intention behind a cut bid may be to influence the bidding competition and surprise or deter potential competitors. It allows the bidder to submit a lower bid while still staying in the race. It is important to note that the use of cut bids depends on the specific rules and guidelines of each auction house. It is advisable to find out about the accepted bidding strategies before participating in an auction.