How to trade currency options?

Options on currencies work in almost exactly the same way as options on other shares, indices, or commodities. The only difference is that currency options are quoted and traded in pairs. Among the rupee currency pairs, there are options on USDINR, GBPINR, EURINR, and JPYINR.

As with other equity options, currency options also have strike prices, terms, spot prices, and an option price. As with equity and index options, there are also call and put options for currency options, which include the right to buy or sell.