Depending upon the boundary, there are three types of system. They are as follows:
1. Open system: The system which can exchange matter as well as energy with the surrounding is called open system. For example: Evaporation of water from beaker. Here, water vapour i.e., matter moves to the atmosphere and heat is absorbed by water from the surrounding.
2. Closed system: The system which can exchange only heat energy with the surrounding but not matter called closed system. Example: Boiling of water in a closed vessel.
3. Insulated/isolated system: The system which can exchange neither matter nor energy with the surrounding is called isolated system. Example: Hot tea in thermos flask.