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Terms starting with B

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Economy, Macro & Market Cycles

Business Cycle

The recurring pattern of expansion and contraction in economic activity around a long-term growth trend.

Phases: expansion, peak, contraction, trough, recovery, repeating with irregular length and amplitude qualitative
Indian Market, Regulation & Taxation

Business Income

Income from trading treated as a business rather than as investment, taxed at slab rates with expenses deductible.

Business Income = Trading Profit - Deductible Expenses including brokerage, exchange charges, internet, depreciation and advisory fees
Derivatives, Futures & Options

Butterfly Spread

A three-strike position buying one option at each outer strike and writing two at the middle strike.

Net Debit = Lower Premium + Upper Premium - 2 x Middle Premium; Maximum Gain = (Strike Interval - Net Debit) x Lot Size