No, they are entirely different. The forward market is an OTC market while the currency derivatives market is an exchange traded futures and options market. In the past, the only way to manage currency risk was through buying of dollar forwards through the banks. The dollar forward market is a closed market among banks where deals are done in an Over-The-Counter (OTC) mode. This is a telephonic mode of hedging currency risk among large institutions. In the last decade, RBI and SEBI have permitted trading in currency future pairs of the Indian Rupee against hard currencies. Indian stock markets permit trading in currency futures and currency options.

Currency futures or FX futures is a futures contract to exchange one currency for another at a specified date in the future at a specified price. Currency futures are always traded in pairs. For example, the USD-INR pair can be used to trade based on your view on the US dollar vis-à-vis the INR. If you expect the USD to strengthen against the INR then you can buy the USD-INR Futures. If you expect the INR to strengthen against the USD then you can look to sell the USD-INR Futures.