Currency Derivatives are futures and options contracts where you can buy or sell specific quantities of a particular currency pair at a predetermined future date.
It is similar to Stock Futures and Options trading. The only difference is that the underlying assets are currency pairs (such as USDINR or EURINR) instead of Stocks. Currency Options and Currency Futures Trading is done in the Foreign Exchange Markets. Forex Rates is the value of a foreign currency relative to domestic currency. The major participants of Currency Trading in India are banks, corporations, exporters and importers.