Margin Requirement for a Long Iron Condor

Applies only to a margin account

The BP Effect of a long iron condor is the net cost of the spread (cost of the long options - the credit of the short options). 

Example of buying an iron condor in a margin account

Sell to open 6 Mar 40 puts at $2.50

Buy to open 6 Mar 50 puts at $6.00

Buy to open 6 Mar 60 calls at $6.00 

Sell to open 6 Mar 70 calls at $1.50 

The BP Effect of this position is $4,800 [($6.00 x 6 contracts) + ($6.00 x 6 contracts) - ($2.50 x 6 contracts) - ($1.50 x 6 contracts)].