Online Auctions - Bid-to-cover ratio

Bid-To-Cover Ratio is a ratio used to express the demand for a particular security during offerings and auctions. In general, it is used for shares, bonds, and other securities. It may be computed in two ways: either the number of bids received divided by the number of bids accepted, or the value of bids received divided by the value of bids accepted.

The higher the ratio, the higher the demand. A ratio above 2.0 indicates a successful auction with aggressive bids. A low ratio is an indication of a disappointing auction, marked by a wide bid-ask spread.