scr879

Hey there!

Suppose the market price is currently $12. Limit buy order are always placed below the current market price.

I place two limit buy orders- one at $10 and the second one at $9.75. The probability that the first order will be executed given that the second one has been executed is 1. The second limit order would require the price to fall to $9.75. On its way down from $12 to $9.75, the market price would definitely cross $10, which is the price at which the first order would execute.

Therefore is a certainty (probability = 1) that the buy order at $10 will be executed given that the price has fallen to $9.75 (the price at which the second order was executed).