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