A futures option that can be exercised only at expiration date. This type of options provides investors with no flexibility as to take advantage of their futures options (specifically the futures price of a commodity or financial instrument) when it seems most favorable to do so without having to wait till expiration (in which case they would run the risk of missing out a profitable early exercise when an option gets deep in the money). This inflexibility implies that the premium of an American futures option is higher (or at least not lower) than the premium of a European futures option whose all other features are identical to those of the American option.
European futures options are generally classified as European futures call options and European futures put options.
