Im looking for some opinions on trading Currencies through options. where is the most liquid market to trade them if there is one? Futures options? ETFs? other? Thanks in advance
IMM (CME) currency options are liquid. 6e options have some good action but we could use some more payers in there
Try the ISE Currency Options - http://www.ise.com/WebForm/viewPage.aspx?categoryId=98&header0=true&menu2=true&link1=true
Neither ISE nor PHLX currency options have much activity, but the contract sizes are more sutable for someone, who doesn't have enough capital to trade the CME options on currency futures.
You might want to take a look at some of the etfs: FXE, FXY, etc. There are some others that trade against each other (not vs. the dollar) but they are less liquid.