The P-Type is connected to the Positive Terminal of the power supply and the N-Type material is connected to the Negative Terminal. When the switch is closed the diode conducts as the negative terminal produced electrons and these move into the N-type material and once the potential difference is over 0.6Volts an electron will jump across the potentail barrier to fill in a hole in the P-Type material.
Another electron is then attracted toward the Anode (+ive) and this will leave a hole behind. Having electrons being added to the N-Type and Hole being added to the P-Type makes sure that there is an ever constant supply of charge carriers and the Diode conducts. This state of conduction is referred to as Forward Bias.
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