In computer processors the parity flag indicates if the number of set bits is odd or even in the binary representation of the result of the last operation. It is normally a single bit in a processor status register.
For example, assume a machine where a set parity flag indicates even parity. If the result of the last operation were 26 (11010 in binary), the parity flag would be 0 since the number of set bits is odd. Similarly, if the result were 102 (1100110 in binary) then the parity flag would be 1.
Read more about Parity Flag: X86 Processors
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