Calendar & diagonal spreads

    What are the specific margin requirements for holding diagonal spreads at major brokerages?

    By Easy Money Scanner · Educational reference · Not investment advice

    The short answer

    Margin requirements for diagonal spreads vary by broker but are generally based on the maximum potential loss of the combined position, often calculated similarly to a defined-risk spread when both legs are held in the same account.

    How it works

    Because requirements differ across brokerages and account types (cash, margin, or portfolio margin), traders should confirm exact figures with their specific broker rather than assuming a standardized industry figure.

    An example

    A broker may require margin equal to the net debit plus any additional risk if the long option expires before the short, so a trader should check these specifics before placing the trade.

    Risk & limitations

    Margin rules can change without notice and differ for portfolio margin accounts versus standard margin accounts; always verify current requirements directly with the brokerage and FINRA/OCC guidance.

    Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.

    Sources & further reading

    Easy Money Scanner provides informational tools using machine learning. This is not investment advice. Trading involves substantial risk of loss. Read full disclaimer →