What Is the Difference between a “European” and “American” Futures Contract?

The terms "European" and "American" are typically used for options to define their exercise style. Futures contracts, however, do not have this distinction as they are generally contracts to buy or sell an asset at a future date.

They are typically settled on the expiration date, which is similar to the European style. The key feature is the mandatory settlement, unlike options, which are a right but not an obligation.