What is the difference between foreign currency future options and currency options?

 

Main Difference.

A future currency futures' contract is an option to forward contract that calls for future delivery of a standard amount of foreign currency at a fixed time, place and price.

A foreign currency option is a contract that gives the option buyer the basic right but not the obligation to actually buy or even sell a given amount of foreign exchange at a fixed price per unit for a given specified time.

In the case of future currency, there is mandatory delivery, while in foreign currency options, the right to exercise is with the option holder.