Futures option is the right to buy and sell futures contracts, including commodity futures options and financial futures options. Generally speaking, options usually refer to spot options and futures options refer to "options for futures contracts". A futures option contract refers to a futures contract that buys or sells a certain number of specific commodities or assets at an agreed price on or before the expiration date of the option.

Futures options are based on commodity futures contracts. When the futures option contract is implemented, it is not the commodity represented by the futures contract, but the futures contract itself. If the futures call option is exercised, the holder will get the long position of the futures contract plus the cash amount, which is equal to the current futures settlement price minus the exercise price.

Futures options can be simply divided into call futures options and put futures options. Call futures options are buying futures options, and put futures options are selling futures options.