What is a forward auction?

Forward Auction is a type of auction where sellers offer goods or services, and potential buyers bid competitively to secure those items. In this auction format, the price typically starts low and increases as buyers place higher bids. The seller chooses the highest bid as the winning offer, and the transaction is completed at that price.

Forward Auctions are commonly used in various industries, including e-commerce platforms, real estate, and art auctions. They create a competitive environment where buyers vie for the items they desire, often resulting in a final sale price that reflects the highest bid.

This auction type is distinct from reverse auctions, where sellers compete to win business from buyers by offering the lowest price or best terms.