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A junction diode is said to be forward-biased when the positive terminal of the external battery is connected to the p−region and the negative terminal to the n−region of the diode.
The potential of p−side is more positive that of n−side, hence diode is in forward biasing. In forward biasing it acts as short circuit, hence current flows.
In case of forward biased circuit P-junction should be at higher potential.
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