This book deals with practical issues in FX options and smile risk. "FX Options and Smile Risk" takes readers through the main technicalities of the FX spot and options markets, helping them develop practical trading skills that will enable them to run an FX options book in the real world. It describes how to build FX volatility surfaces in robust and consistent ways and how to use them in the pricing of vanilla and exotic options. It enables readers to effectively hedge exposures to volatility surface and other risks related to exotic options. It's highly focused on the practical aspects of the pricing and hedging of the typical risks of an FX options desk and deals with the momentous issues of building consistent volatility matrices and a unified approach to pricing and hedging. Antonio Castagna (Milan, Italy) is a Consultant at Iason Ltd, providing pricing and risk management expertise for complex products. He has extensive experience in FX and derivatives, and was previously Head of Volatility Trading at Banca IMI Milan, where he set up the bank's FX Option desk.