Technically, they are like trading in stocks, the only difference being that currencies are always traded in pairs (combinations of two currencies). The currency futures market provides the facility to trade USD-INR, EUR-INR, GBP-INR and the JPY-INR contracts. In case of dollar, Euro and GBP pairs, the lot size is $1000, €1000 and £1000 respectively. Only in the case of the JPY the lot size is ¥100,000. Just to illustrate, the lot value of the USD-INR pair will be around Rs.68,000 at the current exchange rate of 68/$. In 2018, the exchanges have also launched cross currency pairs like EUR-USD, GBP-USD and USD-JPY. Apart from futures on currency pairs, you also have currency options to trade on.

Currency options are also available with similar lot sizes. Initially, currency options were only launched on USD-INR pairs but were subsequently extended to EUR-INR, GBP-INR and JPY-INR pairs too. Like in case of equity options and index options, currency options also offer the right to buy or sell a currency pair without the obligation. All currency futures and currency options are cleared through the Clearing Corporation and therefore all trades carry the counter-guarantee of the clearing corporation. This makes it a lot safer than trying to trade forwards which are not guaranteed by the clearing corporation. When they counterparty is the clearing corporation, there is no default risk for the trader.