Difference between arguments and parameters in Java

Parameter is defined in the method header whereas an argument is the instance passed to the method during run-time.

public class Parameters and Arguments {

    public static int divide(int a, int b) { //a, b are parameters here
         a=5;

         b=5;

        return a%b;

    }

    public static void main(String[] args) {
        int x=divide(a, b); //a, b are arguments here
        System.out.println(x);
    }

}

Here a and b are formal parameters which is declared in the method's header. 

Whereas the a and b becomes arguments in the point of invocation.