Full Article: http://www.arbitrageportfolio.com/information-arbitrage-and-insider-trading/

1. Information Arbitrage
Information Arbitrage is the use of non-public corporate data between
market participants where there is conflict of interests and an imperfect
information imbalance. Meaning that one of traders involve in the
transaction knows more information than his counterparty; given him an
asymmetrical advantage.
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2. Political Arbitrage
Political Arbitrage involves the use of congressional privilege information
of future regulation, policy or political events , to trade market securities.
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3. Insider Trading
Illegal insider trading refers to the buying or selling of securities, in breach
of a fiduciary duty, while in possession of material privilege nonpublic
information about the security.
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