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.