This example builds an iron condor so you get the hedged-margin benefit:
- Buy the OTM call and OTM put hedges first.
- Sell the straddle or strangle only after the hedges are bought.
- On exit, square off the short legs first.
- Square off the bought hedges only after the shorts are closed.
Set 1 entry
Set 1 exit
Set 2 entry
Set 2 exit
Universal exit
Simpler option for exits: turn on Exit Shorts First under the Tranching section of Advanced settings. It squares off short legs before long ones on set exits, Universal Exits and the Exit button on the Deployed page.
Margin rules are set by your broker, so check the margin with them.
Edited with AI from the original Tradetron article, checked against current docs (Oct 2026). Spot something wrong? Tell us in the Community.