Basically...yes. I don't always set a reserve but I will set the minimum bid at near what the reserve would be. So in effect, it acts like a reserve.

The best news is that, as long as you have a pre-set limit on what you feel the item is actually worth, you can get some great deals as long as nobody outbids you. Set the proxy bidder to your limit and be done with it :)

If an item doesn't have a reserved price, it simply means it's an open auction. There is no minimum price to be met. Whoever places the highest bid wins. Proxy bidding is one way to avoid being outbid. You enter your bid for the maximum amount you're willing to pay for an item. The price that shows up is only the next increment that's needed to win the auction. So, if an item is being sold for $1, you can bid $20, but only $2 is entered. If someone tries to outbid you, lets say entering $3, the proxy service automatically enters your bid for $4, etc. up until the maximum amount you've entered. Many people "snipe" on eBay, and often it's the only way you can win an auction without getting into a bidding war and driving the price of the item up unnecessarily during the auction. Sniping is simply placing a bid at the very last minute, outbidding others when the clock runs down and they don't have a chance to place another bid. Proxy bidding is especially useful in conjunction with this last minute bidding technique, as some people with fast connections will refresh their screens within the last 30 seconds or so and steal a winning bid away from you. By proxy bidding, you effectively increase your chances that someone will not snipe an item from you that you really should have won.