By default, Parallels Desktop stores virtual machines in ~/Parallels.
To change the default location for new virtual machine installations:
Do one of the following:
Click the Parallels Desktop icon in the menu bar and choose Preferences. Then click General.
Right-click the Parallels Desktop icon in the Dock and choose Preferences. Then click General.
Choose a location from the Virtual Machines Folder menu.
All newly created virtual machines are stored in the new location. Any existing virtual machines remain in their original locations.
To add Windows or another operating system to your Mac, Parallels Desktop creates a "virtual machine," or a virtual computer, inside your Mac. You can then install Windows in the virtual machine, just as you would install an operating system on a regular computer.
Many use Parallels Desktop to create one virtual machine and install Windows in it. But you can install as many virtual machines as you like, and install a different operating system in each of them. That way you can use multiple operating systems together at the same time on your Mac. And just like with a regular computer, you can turn virtual machines on and off, configure them, and install and use applications.