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Transfer authorization code provided by domain registrar
If you check this option and you have custom DNS records set via the DNS Manager in the hosting Control Panel, then the newly-registered domain name will be parked and set with your custom DNS records. Otherwise, the domain will be parked using the default DNS and mail settings.
You can host the new domain name as parked to existing main/addon domain or as a completely new addon domain name.
Addon domain - Can be used for an additional website, it has its own web and mail services.
Parked domain - Only a pointer to an existing website and mail service at your account.