Another way to express my example, and relating to your statement, would be "Not Necessarily". You have to bid over the bid increment to execute an innitial bid. Once you have executed a proxy bid the full value of that bid is valid. If your bid exceeds all the other proxy bids including those entered before and after yours you would win. Even if only by .01 . Reason being, because you entered your bid at more than the minimum bid increment. Proxy bidding works by executing all bids against each other to the highest total bid regardless of what that is. Your bid could take over another persons bid by only .01 . But then, for someone to outbid you they would have to enter a new bid at say $1 or $1.50 or whatever the bid increment is.

So as an example, if someone has a bid standing of $25 and the increment is at $1, you would have to bid at least $26 to enter a new bid. Lets say the previous bidder has bid $30 and you bid $30.01 you would then be the higher bidder at $30.01 even though the .01 is less than the $1 minimum. Now, for someone to add a new bid over you they would have to bid at least $31.01 to take over the lead. You have to enter a bid at the minimum increment to place the bid. However you don't need the minimum increment to win in the end. You just need the highest standing bid.

Hope that puts it more clearly.