How BigSur in external drive and keep Mojave in main drive

EdmundW

Bit poster
Thank you for any help. I am new with Parallels.
I have a trash can Mac running Mojave I want to keep.
I installed Parallels 17 and wanted to have BigSur in an external drive.
First it says it must create a disk image which I allowed. However when I reach the installation it indicates my internal drive's free space as destination and am afraid to go on.
Will it be installed as a VM inside my internal main drive WITHOUT affecting Mojave and will I be able to move it to the external drive?
Thank you very much for any kind help!
 
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