I use experimental asset markets to analyze trading under different transparency and information settings. I find that both liquidity and informed traders use undisclosed orders to compete for liquidity provision. In opaque markets, traders increase aggressiveness\udto improve execution probability. Without information friction, market opacity enhances liquidity, especially toward the end of trading, and is beneficial for liquidity traders.\udUnder informed trading, adverse selection drives market outcomes mainly around news announcements. Monopolistic insiders exploit opacity at the expense of large liquidity traders. Opacity does not affect informational e¢ ciency with a monopolistic insider, but value discovery is faster when informational rents are shared.
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