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Also called a sealed bid auction, it is a type of auction process in which all bidders place offers simultaneously to buy or sell without seeing the current bids and offers. The highest bidder is usually declared the winner of the bidding process.
This is contrary to an order book format where standing bid and offer prices are continuously visible to all market participants.
In a sealed-bid auction, bidders can only submit one bid and therefore cannot adjust their bids based on the competing ones. Sealed-bid auctions are generally used in tendering for government contracts and real estate.
A blind auction is not legally binding and offers no more security to either party than the usual house-buying system. It is also not as transparent as an English or open outcry auction.
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