American Options vs. European Optionsby Siam Luu
When choosing forex options, make sure you also look to see if they are American-style options or European style options. American-style options give the trader the ability to exercise his or her option at any point in time up to the expiration date. The European option allows the trader to only exercise his or her option exactly on the date the option expires. The difference between the two is small, but important enough to make a difference on an investor's timing abilities.