Question
I trade actively — swapping coins frequently with gains and losses. What exactly do I pay zakat on?
Ruling (Fatwa)
Short answer: A trading portfolio takes the ruling of trade goods (ʿurūḍ at-tijārah) — on your zakat day, pay 2.5% of the whole portfolio's market value plus accumulated trading cash. You do not account for every mid-year trade separately.
Details: Trading profit follows the hawl of the capital — once the capital's year completes, zakat covers capital plus profit; no separate hawl for the profit. If you are in loss, you pay on the actual value standing on your zakat day.
Evidence: Quran 2:267 ('spend from the good of what you have earned' — understood by the early exegetes to include trade); Sahih al-Bukhari 1454 (2.5% on money); the Permanent Committee and Shaykh Ibn Baz on valuing trade goods at the annual date; Shaykh al-Uthaymin (ash-Sharh al-Mumtiʿ, Zakat) that profit follows the principal's hawl.
Caution: Leverage/margin and futures involve riba and excessive gharar and were ruled impermissible by evidence-based scholars; earnings need repentance — but zakat on wealth in hand is still due.
For complex individual cases, consult a qualified scholar.
References
Quran
Quran 2:267
Hadith
Sahih al-Bukhari 1454
Fiqh
Permanent Committee; Ibn Baz; al-Uthaymin