Auction is a process of buying or selling goods or commodities, which is put up for bid. The goods or commodities are sold to highest bidder or buying the item from the lowest bidder. Auctions is common practice to sell or buy the items or commodities even in older generations.
Forward auction works as traditional auction in which seller puts the items or commodities up for bidding, and the buyers bid for the items or commodities. Te highest bidder from the buyers wins the bid and auction. In forward auction, there is only one seller and multiple potential buyers present. The bidding starts at minimum price, and then buyers bid against each other increasing the price with each bid placed in competition with other bidders. When the no other bid is put up by buyers then the item or commodity is sold to highest bidder.
Forward auctions are better understood by the general public than reverse auction as reverse auction is functions completely opposite to reverse auction. The concept of reverse auction is difficult to comprehend as it works on different principles. This auctions also benefits the seller as the seller gets the higher amount for his item or commodity. A specific timing and price is set for the auction, and then after the deadline end, the item or commodity is sold to the highest bidder. Internet-based tools are quite common these day for these type of auctions where the seller meets genuine buyer who bids online and then wait for the deadline to end so that results are announced.
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