The forward biased diode connection is :

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.