In your example AS would send a bid of $250 to eBay. Because of eBays proxy bidding system, if no other bids are made, you COULD win for $202.50 (providing that 200 was their max). You don't know what the current winners max is. Your $250 bid could still be to low to win.
>Click Here< to learn about proxy bidding at eBay, and >here< for bid increments.
and to the forum!