What is a liquidity pool for dummies?

Hey there, could you explain what a liquidity pool is in simple terms? I've heard the term a few times but I'm still a bit confused about how it works. Is it like a big pool of money that traders can use to buy and sell cryptocurrencies? And how does it help keep the market stable? I'd really appreciate it if you could break it down for me in a way that's easy to understand. Thanks!