All,Can anyone suggest good FX options references?I'm interested in both theory and practiceTHX

obvious one is the derosa book, "options on foreign exchange" by wiley...i have a copy which i am selling if u want it...pm me.

You can also buy it through the Wilmott bookshop

As the previous two posters are obviously biased, I will confirm that deRosa's book is worthwhile, especially for a beginner. (The fact that he is a mad hard-right libertarian thankfully doesn't afflict his textbooks.) As for other books, the thing to observe is that FX options are not very complex, and then the question is whether you want books on trading or on modelling - Natenberg, if the former. There are dozens of acceptable choices for the other case.

Mathematical Methods for Foreign Exchange: A Financial Engineer's Approachby Alexander LiptonHardcover: 700 pagesPublisher: World Scientific Publishing Company; 1st edition (October 2001) ISBN: 9810246153 Table of Contents Introduction: Foreign Exchange MarketsMathematical Preliminaries: Elements of Probability TheoryDiscrete-Time Stochastic EnginesContinuous-Time Stochastic EnginesDiscrete-Time Models: Single-Period MarketsMulti-Period MarketsContinuous-Time Models: Stochastic Dynamics of ForexEuropean Options: The Group-Theoretical ApproachEuropean Options, the Classical ApproachDeviations from the Black-Scholes Paradigm I: Nonconstant VolatilityAmerican OptionsPath-Dependent Options I: Barrier OptionsPath-Dependent Options II: Lookback, Asian and other OptionsDeviations from the Black-Scholes Paradigm II: Market FrictionsFuture Directions of Research and Conclusions

The book by Lipton is more on FX option modelling. Any good one for FX option trading? Managing an FX options book etc... reckon the Taleb or Natenberg book does not cover FX options trading right (at least from the table of contents it does not seem like it)... De Rosa's book also seems a tad on the modelling side...