An informal market is a market often defined by one on one bargaining. The informal market is also referred to as a black market. In this market, the market operations usually take place with the exclusion of government -authorized channels. Countries that have stringent currency measures have the most significant number of informal market transactions. Transactions in the informal market can be legal or illegal. The face to face bargaining occurs in the informal market to reduce the risk of fraud. The negotiations have to be direct to ensure trust between the parties involved.