A basket currency option that constitutes a put on a collection (basket) of currencies treated together as a portfolio. A basket currency put option gives the buyer the right, without the obligation, to sell certain currencies in exchange for a base currency, either at the spot market rate or at a predetermined rate of exchange. By nature, a basket option implies an all-or-none (AON) exercise, that is, the holder cannot exercise only on part of the portfolio of underlying currencies. Exercise has to take place on the entire collection at the same time.

A basket currency put option can be settled in either fashion: cash settlement or physical settlement.