A parity bit, or check bit is a bit added to the end of a string of binary code that indicates whether the number of bits in the string with thevalue one is even or odd. Parity bits are used as the simplest form of error detecting code.

When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price at which a convertible security equals the value of the underlying stock. 2. Options - when an option is trading at its intrinsic value ("trading at parity"). 3. International parity - official rates for a currency in terms of other pegged currencies, typically the U.S. dollar.