Lit pool

Lit pools, also called lit markets, are a type of stock exchange. They are effectively the opposite of dark pools or dark liquidity. Whereas ‘dark’ venues do not display prices at which participants are willing to trade, lit pools do show these various bids and offers in different stocks. Primary exchanges operate in such a way that available liquidity is displayed at all times and form the bulk of the lit pools available to traders.{{Cite web |url=http://www.atmonitor.co.uk/glossary.aspx?id=158 |title=Glossary | ATMonitor |access-date=2011-01-27 |archive-url=https://web.archive.org/web/20101030113641/http://atmonitor.co.uk/glossary.aspx?id=158 |archive-date=2010-10-30 |url-status=dead }} The majority of trades, 70%, are transacted over lit pools.{{Cite web |title=What is Lit pool |url=https://capital.com/lit-pool-definition |access-date=2022-03-17 |website=capital.com |language=en}} Lit pools are closer to what is generally considered the ideal market, due to their transparency.{{Cite web |last=Bennington |first=Ash |date=2011-01-12 |title=Dark Pools & Lit Pools: A Financial Morality Tale? |url=https://www.cnbc.com/id/41040999 |access-date=2022-03-17 |website=CNBC}}

If a market is a lit or dark pool has implications for optimal trading strategies, which are debated by scholars{{Cite journal |last1=Alessandra Crisafi |first1=M. |last2=Macrina |first2=Andrea |date=2015-02-01 |title=Dark-Pool Perspective of Optimal Market Making |arxiv=1502.02863 |url=https://ui.adsabs.harvard.edu/abs/2015arXiv150202863A |journal=Astrophysics Data System}}{{cite arXiv |last1=Baldacci |first1=Bastien |last2=Manziuk |first2=Iuliia |last3=Mastrolia |first3=Thibaut |last4=Rosenbaum |first4=Mathieu |date=2019-12-02 |title=Market making and incentives design in the presence of a dark pool: a deep reinforcement learning approach |class=q-fin.MF |eprint=1912.01129 }} as well as market participants.{{Cite journal |last=Palmer |first=Max |date=2010-03-20 |title=Dark and Lit Markets: A User's Guide |url=https://guides.pm-research.com/content/iijtrading/2010/1/94 |journal=Trading |language=en |volume=2010 |issue=1 |pages=94–100}}{{Cite web |last=Goodman |first=Daniel |title=NYSE Floor Trader Explains How Stocks Are Traded In Dark Pools |url=https://www.businessinsider.com/dark-pools-versus-lit-markets-explained-2013-4 |access-date=2022-03-17 |website=Business Insider |language=en-US}}