[Cupid]

To me this sounds like you have this all figured out correctly now.

The fundamental truth that bidders should always bear in mind is that on Ebay the highest accepted bid always wins.

What often confuses people is that what Ebay will accept is based on the current auction price, not on what the high bidders actual (undisclosed/hidden) bid is. The auction price displayed by Ebay is more related to the second highest bidders maximum bid than it is to the current high bidders actual maximum bid.

So, yes, that's why this only really comes into play when there are multiple other snipers involved and they push the auction price up to near your maximum bid before your bid is scheduled to be placed. That is why bidding before other snipers can be helpful in winning more auctions.