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It's a parameter used in the definition and body of a function/method. The term "formal argument" is used in contrast to actual arguments, which are the values passed to a function when calling it.
[python]
def f(x): # x is a formal argument
return 2*x
print(f(3)) # 3 is an actual argument
a=5
print(f(a)) # a is also an actual argument



