Lit pools, also called lit markets, are a type of

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...

. They are effectively the opposite of ‘dark’ pools or

dark liquidity In finance, a dark pool (also black pool) is a private forum ( alternative trading system or ATS) for trading securities, derivatives, and other financial instruments.stock In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...

s. Primary

exchange Exchange may refer to: Physics * Gas exchange is the movement of oxygen and carbon dioxide molecules from a region of higher concentration to a region of lower concentration. Places United States * Exchange, Indiana, an unincorporated community * ...

s operate in such a way that available

liquidity Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: * Market liquidity, the ease with which an asset can be sold * Accounting liquidity, the ability to meet cash obligations when due * Liqu ...

is displayed at all times and form the bulk of the lit pools available to traders. The majority of trades, 70%, are transacted over lit pools. Lit pools are closer to what is generally considered the ideal market, due to their transparency. If a market is a lit or dark pool has implications for optimal trading strategies, which are debated by scholars as well as market participants.

References

{{Reflist Financial markets