Lit Market
Market Microstructure glossary · Market Microstructure Fundamentals
Definition
A trading venue (typically an exchange) where the limit order book is pre-trade transparent and broadcast in real time. Contrasts with dark pools.
Lit Market in plain English
A lit market is a trading venue where everyone can see the waiting orders in real time — the prices people are willing to buy and sell at, and how much, all posted publicly BEFORE any trade happens (that's what "pre-trade transparent" means). Think of it like an open farmers' market where every stall's prices are on a big chalkboard for all to read. This is the opposite of a "dark pool," a private venue where orders stay hidden until after they trade. The lit market matters because that visible board of orders is what tells the whole world what things are currently worth.
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