According to Mark Sebastian, the way he sees it, pilots need to understand the concept of what makes an aircraft lift off before they can fly. Thus, traders should learn and understand various mathematical concepts behind binary options first before using them for trading.
The Career of Mark Sebastian
Sebastian, one of the best US binary options brokers, built a career around trading options. He spent approximately 10 years working for the Chicago Board Options Exchange and the American Stock Exchange. At present, he is the CEO of Option Pit Mentoring and Consulting, an option education firm based in Chicago; and he is also the managing editor of the “Expiring Monthly: The Option Traders Journal” which is a digital, all-options magazine.
Sebastian also encourages potential USA binary option brokers to do more than just strategies. Options are actually contracts that will allow the buyer to have a right to buy or sell a commodity at a certain price before a specific date.
Successful Options Trading
According to him, the key to become successful in binary trading USA is no to go for the shortcuts.
“It is really annoying to have to learn all of the math behind options. But it is worth every cent. I would argue you need to understand up and down how options function intuitively. Then applying a strategy over how options function becomes very simple. I equate it to understanding the physics behind a plane or helicopter before you fly it. They make pilots do that,” he said.
Sebastian says trading is actually a difficult task. “If it was easy, everybody would be doing it.”
“The key is you can avoid failing by really learning how options work and how futures work,” he added.
Sebastian started his career in trading with Group One Trading. This firm is an equity option firm where he was taught to learn the math behind the options he was selling; how the pricing works and the risk tools as well.
Sebastian said, “They basically forced us to understand the stuff up and down. Since I’ve gotten into this business, I’ve become a mentor. It took me a while to realize what was missing. There are a lot of people teaching “here’s what a call spread is” and there are a lot of people saying “here is what a butterfly spread is”. But there is nobody teaching “this is what an option is and this is how it really functions.” That is what I am out to change.”
According to Sebastian, as soon as potential traders begin to understand how options work, they can then decide whether trading is really for them.