When your Profit and Loss (PNL) shows a good profit, but your capital reduces after withdrawal, consider these possible explanations:

*Accounting and Trading Factors*

1. Unrealized profits: PNL includes unrealized profits (paper profits) from open positions. Withdrawal doesn't consider these.
2. Margin calls: If you're trading with leverage, margin calls can reduce capital.
3. Trading fees: Binance charges fees on trades, reducing capital.
4. Withdrawal fees: Fees applied to withdrawals.

*Accounting Adjustments*

1. Closing positions: Profitable positions closed, realizing gains.
2. Balance conversions: Converting between currencies may incur losses.
3. Interest or funding rates: Swaps, futures or margin trading incur interest.

*Binance-Specific Factors*

1. Cross-margining: Losses in one trade offset gains in another.
2. Isolated margin: Losses in isolated margin accounts reduce capital.
3. Stop-loss or take-profit orders: Automated trades may reduce capital.

*To Minimize Capital Reduction*

1. Monitor open positions and adjust.
2. Set stop-loss/take-profit orders.
3. Adjust leverage and margin.
4. Consider hedging strategies.
5. Review trading fees and withdrawal fees.
6. Regularly review and adjust your trading strategy.

*Clarification*

To better understand your specific situation, provide more details:

1. Trading strategy (spot, futures, margin).
2. Leverage used.
3. Asset classes traded.
4. Withdrawal amount and frequency

#Explain_Binance #Why_Capital_Reduces