Imagine there are 4 candidates A,B, C & D
I really like candidate A, but B will do in a pinch. C and D are both utterly shit, but if push came to shove then C would be marginally less reprehensible.
So obviously my first choices are:
1st - A
2nd - B
Now imagine A, and B get all the votes they need, so my vote would be potentially transferred. If I additionally put
3rd - C
4th - D
Then my vote transfers to C and then D if C gets enough votes.
But what happens if I leave my third and fourth choices blank? Does that just mean one less potential vote for both C and D? Does your vote just cease to exist if you don't indicate a preference?