What does it mean if a bid is "knocked down"?

When a bid is "knocked down," it signifies that the auctioneer has confirmed the highest bid and declares the item sold. This term is derived from the physical action taken by the auctioneer, who often drops or strikes their gavel to signal the conclusion of the bidding process. By doing so, they signal to all parties that the bidding has ended and the item is now officially awarded to the highest bidder. This action is a crucial part of the auction process, as it marks the transition from bidding to the finalization of the sale, thus providing a definitive closure to that part of the auction.