Zakat on Trading vs Holding Assets
The way you calculate Zakat on assets depends on whether you are actively trading them or holding them long-term.
Traders and long-term holders calculate Zakat differently. Traders pay on market value; long-term holders may have other considerations, but most pay on market value too.
If You Are a Trader
Pay Zakat on full market value.
If you buy and sell assets regularly (shares, crypto, commodities), treat them as trading inventory. Calculate the total market value on your Zakat date and pay 2.5%.
tip
Intention Matters