# The difference between isolated trading mode and mutual trading mode
Isolated trading mode
- Definition: Isolated trading mode is a trading mode in which trading funds are separated from other funds in the account.
- Purpose: The purpose of isolated trading mode is to protect other funds in the account from losses resulting from trading.
- Characteristics: Isolated trading mode is characterized by the following features:
- Separating trading funds from other funds in the account.
- Setting a maximum limit on losses that can be incurred.
- Protecting other funds in the account from losses resulting from trading [1].
Mutual trading mode
- Definition: Mutual trading mode is a trading mode in which the available funds in the account are used to finance trades.
- Purpose: The purpose of mutual trading mode is to increase trading capacity and achieve greater profits.
- Characteristics: Mutual trading mode is characterized by the following features:
- Using available funds in the account to finance trades.
- Increasing trading capacity and achieving greater profits.
- Increased risks and potential losses.
The difference between isolated trading mode and mutual trading mode
- Purpose: The purpose of isolated trading mode is to protect other funds in the account, while the purpose of mutual trading mode is to increase trading capacity and achieve greater profits.
- Characteristics: Isolated trading mode is characterized by separating trading funds from other funds in the account, while mutual trading mode is characterized by using the available funds in the account to finance trades.
- Risks: Isolated trading mode is considered less risky than mutual trading mode, as other funds in the account are protected from losses resulting from trading.