Auctions (in General)

Well with school and everything i have not been able to get on much, hardly at all. But enough with that. I dont understand the auction thing. it says:
Your bid will automatically be increased up to the amount you give here. Only you will see what your real maximum bid is. 'Just like eBay.'

i never used eBay. what is that mean?

It means you enter the maximum amount you would be willing to pay and it keeps bidding the next increment for you up to that amount so you don't need to be there to keep bidding

so for example if the current was say 1k and i bid 20k my bid would be really 2k and then if someone else bid say 4k my bid would then keep outbidding them until it reachs 20k?

precisely