Interactive mode is an option that is available to many tools when adding or modifying geometry. It enables you to visualise the result of the tool before actually applying it.
For example, when using the Edit - Trim - Fillet tool if you switch on Interactive mode you will not be asked to enter the fillet radius on the edit bar. Instead, you will select the two entities as normal and then the fillet will appear as a cursor that you can drag to the required location by moving the mouse around. When you have the required fillet, click the mouse to accept it.
Similarly, with the Edit - Transform - Move tool if you switch on Interactive mode you will not be asked to enter the X and Y offset values. Instead, you will be prompted to identify two points to define a relative offset.
Interactive mode is available for the following tools: