This is an optional setting in URL forwarding, where you have your domain or hostname redirect to another resource. The difference between redirection and stealth forwarding is that the browser’s location bar will update with the destination resource’s URL.
Redirects are handy for migrations, for moving from one domain to another, and when doing so, you want to set the 301 Redirect option.
When you do this, you are telling the remote client, and search engines that this redirection is permanent. It means search engines will generally take the presence of the 301 header to mean that they should take any relevance or page rank from the source URL (the one you are forwarding) and ascribe it to the destination URL.
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