It works like this; Guy A places domain auction, let's say starting bid is $10.00
Guy B sees auction and bidding increments are in (let's say) $1.00
Guy B is willing to pay up to $100.00 for Guy A's domain name. He enters this fact into his bid sheet. So Guy B bids $11.00 for domain name.
Along comes Guy C and sees domain for $11.00 and like the name. He bids $12.00 and immediately gets email stating that he has been outbid.
Reason? Guy B will auto conter bid because of what his max amount he is willing to pay has not been met.
