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What is the difference between (function(){/*.....*/})(); and (function($){/*.....*/})(jQuery);

Is there difference between :
(function() {
/*..........*/
})();
and :
(function($) {
/*..........*/
})(jQuery);

Other people explained what the difference is, but not why you use the latter.
The $ variable is most often used by jQuery. If you have one script tag that loads jQuery and another that loads your code, it's perfectly fine. Now throw prototype.js into the mix. If you load prototype.js and then jQuery, $ will still be jQuery. Do it the other way around and now $ is prototype.js.
If you tried to use $ on such a page, you'd likely get errors or weird behavior.
There are many questions on StackOverflow about this problem. Plugins shouldn't assume much about the page they're loaded in, so they use this pattern defensively.

i am asking if there is difference between (function(){/…/})(); and (function($){/…/})(jQuery);
A little difference. In case of (function($){/*…*/})(jQuery); and absense of jQuery you'll get an error message immeditally after page loads. It's a simpler to detect jquery absense or incorrect order of scripts inclusion, when jquery-based code included before jQuery.
In case of (function(){/*…*/})(); you'll get an error message when code inside this construction actually call one of jQuery methods. It's harder to detect this error, but on the other side you can include your jquery-based scripts before jquery.
I prefer first case.

The second form, (function($){/*…*/})(jQuery); can be slightly safer when working in an environment where you don't (or can't) strictly enforce what code gets put on your site.
I used to work on a large site with a lot of third-party ads. These ads would often unsafely inject their own version of jQuery and occasionally they would override jQuery's global $ object. So, depending on how we wrote our code, we might be calling methods that no longer existed or had slightly different behaviour from what we expected. This could be impossible to debug, since some ads would never appear in our area or were excluded from our environment. This meant we had to be extremely protective of scope, inject our dependencies before any ad code had a chance to load, namespace anything that had to be global and pray no ad screwed with us.

Other answers are quite fragmented so I'd like to give a more detailed answer for the question.
The main question can be self-answered if you understand..
What does (function(argument){ /*...*/ })(value); mean?
It's a quick hand version of:
var tempFunction = function(argument){
/* ... */
}
tempFunction(value);
Without having to go through the hassle of conjuring up a new terrible name for a function that you will only call once and forget. Such functions are called anonymous functions since they aren't given a name.
So (function(){/*...*/})() is creating a function that accept no argument and execute it immediately, while (function($){/*...*/})(jQuery) is creating a function that accept one argument named $, and give it the value of jQuery.
Now that we know what the expression means, surely the first think on our mind is
"Why?". Isn't $ jQuery already?
Well, not exactly. We can never be sure. $ is an alias of jQuery, but other libraries can also use the same alias. As user #FakeRainBrigand already pointed out in his answer, prototype.js also use $ as its alias. In such cases, whichever library assigns its value to $ later wins out.
The practice of (function($){...})(jQuery) is very similar to an alias import in other programing languages. You are explicitly telling the system that your function:
Requires an object/library named jQuery, and
Within your function, $ means jQuery.
So even when someone include a new library later that override the alias $ at the global level, your plugin/framework still works as intended.
Because javascript is so... "flexible" in variable assignment, some people (including me) go as far as doing things like
var myApplication = (function($, undefined){ ... })(jQuery);
Apply the same understanding, it is easy to interpret the second argument part as: assign nothing to the variable undefined. So we can be sure that even if some idiot assigned a value to undefined later, our if(checkVariable === undefined){} won't break. (it's not a myth, people really do assign values to undefined)
When is it commonly used in javascript?
This anonymous function practice is most commonly found in the process of providing encapsulation for your plugin/library.
For example:
var jQuery = (function(){
var publicFunction = function(){ /* ... */}
var privateFunction = function(){ /* ... */}
return {
publicFunction : publicFunction
}
})();
With this, only jQuery.publicFunction() is exposed at the global scope, and privateFunction() remains private.
But of course, it is also used any time you simply want to create a function, call it immediately, and throw it away. (For example as a callback for an asynchronous function)
For the bonus question
why they used (function(){}() twice in the below code?
Well, most likely because they don't know what they're doing. I can't think of any reason to put nested function in like that. None at all.

(function(){/*...*/})(); does not set $ as reference to jQuery within IIFE and (function($){/*...*/})(jQuery); sets $ or other parameter name; e.g.; (function(Z){/*...* Z("body") where Z : jQuery*/})(jQuery); as reference to jQuery within IIFE

The they are both closures. The first is just an anonymous function that will fire any well formatted code that is inside immediately. The second is the jQuery closure. It is how the jQuery library initiates it wraps its code in the JQuery object and exposes it isn't the $ symbol.
(function(){}()) // this is a closure
(function($){}(jQuery)) // is a closure that wraps the executed code inside of the jQuery returned object and exposes it via the $.

With this (function(){/*…*/})();, you are not passing any argument to the inner function, while with this (function($){/*…*/})(jQuery); you are passing jQuery as argument to the inner function and expecting its value as $(which means, you will be able to use jQuery inside the inner function).
Ex:
(function($){
$(document).ready(function() {
console.log('all resources loaded');
})
})(jQuery);

They both are examples of Immediately Invoked Function Expression. In that sense, there is no difference between (function(){/*…*/})(); and (function($){/*…*/})(jQuery);. So no benefits are gained by wrapping (function($){/*…*/})(jQuery); inside (function(){/*…*/})();
A new execution context is created when a function is executed. So when (function(){/*…*/})(); is executed a context is created. Again when (function($){/*…*/})(jQuery); is executed, another context is created. Since the first context is not used (i.e. no variables are declared inside it), I don't see any advantages gained by the wrapping.
(function() { // <-- execution context which is not used
(function($) { // <-- another execution context
"use strict";
/*..........*/
})(jQuery);
})();

Anonymous functions syntax in jQuery

I have read lots of articles regarding jQuery and its syntax. However I have not fully understood its syntax and I would really like to get a better and deeper understanding of it.
Many articles fail to point out the simple syntax rules (and what they are necessary for).
As of right now I am experiencing a syntax-understanding-problem:
my HTML:
<body>
jQuery.com
jQuery.com
jQuery.com
<!-- JQUERY -->
<script src="http://ajax.googleapis.com/ajax/libs/jquery/2.1.3/jquery.min.js"></script>
<script>
(function ($) {
// EXAMPLE 1
$("a").each(function () {
console.log(this.title);
});
})(jQuery); // ... everything works fine.
(function ($) {
// EXAMPLE 2
$("a").each(function () {
console.log(this.title);
});
}); // ... missing (jQuery). Why isn't this working?
$(function () { // ... notice the $ at the beginning.
// EXAMPLE 3
$("a").each(function () {
console.log(this.title);
});
}); // ... missing (jQuery). Why IS this working?
// EXAMPLE 4
$("a").each(function () {
console.log(this.title);
}); // ... everything works fine.
</script>
</body>
I will clarify how I understand the code, and I would absolutely appreciate if you answer me in a very basic manner. Please do point out all my misunderstandings!
My Understanding and Questions so far:
Example 1: I create an anonymous JavaScript-function. This function is executed right in that moment the browser reads it. I pass it the jQuery-Object (with ($) but I don't know why this is important at that point). From now on my function 'speaks' jQuery (it understands its syntax - I am assuming). At the very end of my JavaScript-function I pass it the jQuery object again (but why would that be necessary?). Please enlighten me.
Example 2: I tried the same function without the (jQuery) at the end. Now it is not working. I understand what is missing. But why is that (jQuery) at the end so important?
Example 3: Now I STARTED my Javascript-function with the $ and I assume that from now on my whole function is WRAPPED inside a jQuery object. Inside this jQuery-object my function understands jQuery syntax. At the end NO (jQuery) is needed.
Example 4: Here I did NOT build a JavaScript function. I just use jQuery to select and return the ("a"). This code gets executed right in the second the browser reads it. No waiting for the document to be ready.
My Question basically is:
In Example 1, why is that ($) at the beginning AND the (jQuery) at the end necessary? What is the purpose?
I would really appreciate longer answers where I can get a deeper understanding of "reading jQuery syntax correctly" and speaking about jQuery syntax and what it requires. Thanks.

I create an anonymous JavaScript-function. This function is executed right in that moment the browser reads it.
Not quite. You create a function expression.
function () { }
You then follow it with () which calls it a moment later.
You could have done it like this:
var myfunction = function ($) { ... };
myfunction(jQuery);
I pass it the jQuery-Object (with ($) but I don't know why this is important at that point).
No. You are defining a function. It accepts a single argument, the value of which gets assigned to a local variable called $.
From now on my function 'speaks' jQuery (it understands its syntax - I am assuming).
Syntax belongs to JavaScript, not jQuery.
At the very end of my JavaScript-function I pass it the jQuery object again (but why would that be necessary?). Please enlighten me.
You are passing the jQuery object for the first time. It is the argument you are passing to the function when you call it. The value of jQuery (the jQuery object) is assigned to the local $ variable.
This is used for two purposes:
It lets you use the $ variable without worrying about it being overwritten by Prototype JS, Mootools, or any of the other libraries that thought it was a good idea to use something as generic as $ as a variable name.
It lets you have local variables that won't pollute the global scope.
I tried the same function without the (jQuery) at the end. Now it is not working. I understand what is missing. But why is that (jQuery) at the end so important?
The () are important because without them you won't call the function.
The jQuery is important because otherwise $ would be undefined within the function.
Now I STARTED my Javascript-function with the $
Here you are calling the function $() with your function expression as the argument.
$ is a horribly overloaded function that does many different things depending on what type of argument you pass it.
If you pass it a function, then it will assign that function as a document ready event handler.
When the DOM has finished loading, the event will fire and the function will be called.
Here I did NOT build a JavaScript function. I just use jQuery to select and return the ("a"). This code gets executed right in the second the browser reads it. No waiting for the document to be ready.
Yes

First off, there is no "jQuery syntax". jQuery is a library, written in JavaScript, so the syntax is JavaScript.
Example 1: I create an anonymous JavaScript-function. This function is executed right in that moment the browser reads it. I pass it the jQuery-Object (with ($) but I don't know why this is important at that point). From now on my function 'speaks' jQuery (it understands its syntax - I am assuming). At the very end of my JavaScript-function I pass it the jQuery object again (but why would that be necessary?). Please enlighten me.
You seem to know how functions and arguments work. So look at your code:
(function ($) {
// EXAMPLE 1
$("a").each(function () {
console.log(this.title);
});
})(jQuery);
You define an anonymous function that takes one argument: a variable named $, which you use in the statement $("a"). Then you call your anonymous function and pass it the jQuery object, so inside the function, $ === jQuery.
Example 2: I tried the same function without the (jQuery) at the end. Now it is not working. I understand what is missing. But why is that (jQuery) at the end so important?
Without the () at the end, you're not even calling your function. You just define it and then lose it since you're not assigning it to a variable.
If you put just (), it won't work either because the function argument $ would be undefined and override the global $ (window.$).
However, if you declared the function just as function(), I think it would work because $ would then refer to window.$.
Example 3: Now I STARTED my Javascript-function with the $ and I assume that from now on my whole function is WRAPPED inside a jQuery object. Inside this jQuery-object my function understands jQuery syntax. At the end NO (jQuery) is needed.
Now you call $ as a function with one argument: your anonymous function.
Example 4: Here I did NOT build a JavaScript function. I just use jQuery to select and return the ("a"). This code gets executed right in the second the browser reads it. No waiting for the document to be ready.
Yes you do build a function, and you pass it as argument to the each() function of the object that $("a") returns.
My Question basically is:
In Example 1, why is that ($) at the beginning AND the (jQuery) at the end necessary? What is the purpose?
What's the purpose of arguments to functions?
But what you don't seem to understand: $ is just a variable (or a function if you want, but in JS functions are variables).

The solution to your problem comes down to understanding closures within JavaScript ... and not so much jQuery - jQuery is just using closures.
With a closure you can scope the content that is within and also pass arguments to that closure for use within.
For your example 2, if you pass in jQuery to the closure it would work fine.
Like:
(function ($)
{
$("a").each(function () {
console.log(this.title);
});
})(jQuery); // arguments passed in here
Becuase you do not pass in jQuery at the end then the argument $ is undefined and therefore cannot be called in the case of $('a'). When written the way I have changed it jQuery is assigned to the $ argument, which is available to the code which is inside the closure.
Similarly for your example 3, you are not passing in jQuery and you also have no variable $ within your closure so it will not work. Note that you could change it to be like (illustrative purposes only):
(function (thisIsJquery)
{
thisIsJquery("a").each(function () {
console.log(this.title);
});
})(jQuery);
Now jQuery is assigned to the argument thisIsJquery and it is available within the closure.
As for your exmaple 4, $ is being used within the closure it was defined in (and not another closure inside that) so it is readily available for use.
Closures are an excellent way to hide implementation and provide a way to make things private in JavaScript.
Further reading:
http://www.w3schools.com/js/js_function_closures.asp
https://developer.mozilla.org/en-US/docs/Web/JavaScript/Closures

I'll only focus on what's not working. The following snippet:
(function ($) {
$("a").each(function () {
console.log(this.title);
});
}) // not calling function
First of all, you're not calling the function. So, anything inside it will not run. So, you might think that by adding () at last, might solve it.
But that's not all!
Because $ refers to jQuery, outside the snippet. But since you're including a named parameter as $ and not passing anything to it, the $ inside the snippet shadows the one outside. And since it's not assigned any value, it is undefined. So you'll end up with
undefined is not a function
To prove it, adding ($) will work, as now, the named parameter $ refers to the $ which points to jQuery.

Anonymous function in javascript with jquery

What is the difference between
I know here the global jQuery is passed as $ to function,
(function($){
})(jQuery);
and this one
$(function(){
})();

The second one is not a common pattern (it will throw a type error), unless you included the invoking parentheses by mistake:
(function($){
// Normal IIFE that happens to pass jQuery in as an argument
})(jQuery);
$(function(){
// Shorthand DOM-ready event handler
}); // <-- Remove the invoking parentheses

$(function(){
// Backbone code in here
}); :
This is an alias to jQuery’s “DOMReady” function which executes when the DOM is ready to be manipulated by your JavaScript code. This allows you to write code that needs the DOM, knowing that the DOM is available and ready to be read, written to, and otherwise modified by your application.
This is not a module, though. This is only a callback function passed in to the DOMReady alias. The major difference between a module and a callback, in this case, is that jQuery waits for the DOM to be ready and then calls the callback function at the appropriate time – all from the context of jQuery – while a module pattern or immediately invoking function executes immediately after it’s defined. In the above examples, the module is receiving jQuery as a parameter, but this is not the same as using jQuery’s DOMReady event because the module function is called, passing in jQuery as a parameter, immediately. It does not wait for the DOM to be ready. It executes as soon as the function has been parsed.
(function($) {
// Backbone code in here
})(jQuery);:
This is an immediately-invoking function expression (FKA “anonymous function”, “self-invoking function”, etc).
The implementation of this is a function that is immediately invoked by the calling (jQuery) parenthesis. The purpose of passing jQuery in to the parenthesis is to provide local scoping to the global variable. This helps reduce the amount of overhead of looking up the $ variable, and allows better compression / optimization for minifiers in some cases.
In this case, the function is being used as the JavaScript “module” pattern. Modules in the currently implemented version of JavaScript in most browsers, are not specific constructs like functions. Rather, they are a pattern of implementation that use an immediately invoking function to provide scope and privacy around a “module” of related functionality. It’s common for modules to expose a public API – the “revealing module” pattern – by returning an object from the module’s function. But at times, modules are entirely self-contained and don’t provide any external methods to call.
check this

The first snipset will execute the "function($){...}" as js parser encounter it, creating a kind of private context inside it where $ argument var will point to jQuery because it is passed as argument "(jQuery)" (Useful if you want to avoid any collision with a previously declared $ var which would reference something else than the jQuery object)
The second one looks like JQuery.ready function call but with a syntax error. There is two way for writing it actualy
$(document).ready(function(){
/* DOM has loaded */
});
$(function(){
/* DOM has loaded */
});

$(function(){
});
This is just the shorthand for the DOM-ready event handler, which is the equivalent of:
$(document).ready(function(){
// execution when DOM is loaded...
});
Now over to this:
(function($){
// code here
})(jQuery);
This code will not be executed on DOM ready, but it will be executed directly. What the advantage is to pass jQuery as a parameter into the function, is to avoid collisions with the usage of the dollar symbol ($), as multiple libraries use it as a shorthand reference. Everything inside the function can safely use $, as this is being passed in as a reference to jQuery.
Read more about conflicts on the $ symbol: jQuery noConflict
If you combine the two code snippets, you get a nice and solid setup:
// $ reference is unsafe here in the global scope if you use multiple libraries
(function($){
// $ is a reference to jQuery here, passed in as argument
$(function(){
// executed on dom-ready
});
})(jQuery);
PS: Because function in JavaScript can be both a statement or an expression, depending upon context, most people add extra parenthesis around it to force it to be an expression.

(function ($)
})(jQuery);
it a function being defined and then immediately called, with the JQuery object passed in as an argument. The $ is a reference to JQuery which you can then use inside the function. It's equivalent to this:
var Test = function ($){};
Test(jQuery);
and this:
$(function (){
});
is a call to JQuery, passing in a function which it should execute once the document has finished loading.

Troubles with (function(){})() [duplicate]

This question already has answers here:
What is the purpose of a self executing function in javascript?
(21 answers)
Closed 8 years ago.
So far I've learned the benefits of using this function (is it wrapping?)
So, it almost acts like namespaces.
Suppose we have:
( function() {
function foo(){
alert(true);
}
foo(); //alerts true
})();
( function() {
function foo(){ //the same title of the function as above
alert("another call of foo");
}
foo(); //alerts, ok.
})();
Also I've noticed it can access public vars, like this:
var __foo__ = 'bar';
( function() {
alert(__foo__); //alerts bar
})();
I have several questions regarding this approach
What I've tried:
Use Bing for tutorials (I' found them, but many of them don't answer my questions)
Play with passing objects into the body
Find the answer here
But, I'm still beating my head against the wall
So the questions are:
I've seen people pass objects as params, but when DOES it make sense?
For example, what does it mean?
( function(window) {
})(document);
I saw smth like this in Jquery UI Lib
( function($) {
//some code of widget goes here
})(Jquery);
This makes inner code visible outside the function, right? (not sure) Why, this is because
we can access the object (say we have "modal" widget), simply by calling it,
like:
$(function(){
$("#some_div").modal(); //here it's object the we got from the function
});
And the second question is: How does it work.

I've seen people pass objects as params, but when DOES it make sense? For example, what does it mean?
( function(window) {
})(document);
The language does not treat parameters to immediately called functions differently than parameters to other functions.
It makes sense to use a parameter whenever you want a local name in your function body for an input. In this case it's a bit confusing since window and document are likely to be confused.
( function($) {
//some code of widget goes here
})(Jquery);
This makes inner code visible outside the function, right? (not sure) Why, this is because we can access the object (say we have "modal" widget), simply by calling it,
No. It does not by itself make any code visible outside the widget. It's just a parameter definition which provides a new&local name for a global variable.
What makes inner code visible outside is attaching it to an external object as in
$.exportedProperty = localVariable;
which is a common convention in jQuery code.

There are mainly 2 purposes of passing in the window and document objects such as seen below
(function(window, document){
// code
}(window, document);
Javascript can access local variables faster than global variables. This pattern in effect makes the names window and document local variables rather than global, thus making your script slightly faster.
Making these names local variables has another benefit: minifiers can rename them. So if you minify the above script, the local version of window might get renamed to a and document might get renamed to b, thus making the minified script smaller. If you were to reference them as globals, these renamings are impossible because that would break your script.
For more info, checkout these awesome videos
http://paulirish.com/2010/10-things-i-learned-from-the-jquery-source/
http://paulirish.com/2011/11-more-things-i-learned-from-the-jquery-source/

on your first question, I dont think you seen window and document but something more like:
(function(doc) {
var fubar = doc.getElementById("fubar"); // === document.getElementById("fubar")
})(document);
you have a self-invoking function (or closure) with arguments like any function:
var b = function(str) { alert(str); }
b('hi there') //alert('hi there');
the same thing is it with the code above, but we are just calling the method at once we created it.
the other code you have:
( function($) {
//some code of widget goes here
})(Jquery);
is to reserve the $variable inside the metod to refer to the jQuery object, this is very handy if you have more frameworks or replaced the $ object with something else, everything inside that method with an $ will refer to the jQuery object and nothing else(if you don´t replace it inside your code).
the code:
$(function(){
$("#some_div").modal(); //here it's object the we got from the function
});
is calling jQuery and its a shortcut for $(document).ready
it will call the method:
function(){
$("#some_div").modal(); //here it's object the we got from the function
}
as soon as the DOM is ready

The pattern is called a closure. It makes sense to use when a module or function:
wants to avoid polluting globally-scoped variables
wants to avoid use globally-scoped variables and avoid other code polluting them
For an example of each, first take this pattern:
(function(window) {
// ...
})(window);
Everything inside the closure will be able to use window as if it were a local variable.
Next, take the same pattern using the JQuery symbol:
(function($) {
// ...
})($);
If you have some code that relies on a symbol/namespace like $, but another module reassigns that, it can screw up your code. Using this pattern avoids this by allowing you to inject the symbol into a closure.

Whenever you pass an argument to that wrapping function it's so that you won't mess up with any other libraries or global variables that may be present in your application.
For example as you may know jQuery uses $ as a symbol for calling itself, and you may also have another library, that will also use $ for calling itselt, under this condition you may have trouble referencing your libraries. so you would solve it like this:
(function($){
// here you're accessing jQuery's functions
$('#anything').css('color','red');
})(jQuery);
(function($){
// and in here you would be accessing the other library
$.('#anything').method();
})(otherLibrary);
This is specially useful when you're making jQuery or any other kind of library plugins.

What it does is allow you to use the $ variable inside your function in place of the jQuery variable, even if the $ variable is defined as something else outside your function.
As an example, if you're using both jQuery and Prototype, you can use jQuery.noConflict() to ensure that Prototype's $ is still accessible in the global namespace, but inside your own function you can use $ to refer to jQuery.

I'd like to understand the jQuery plugin syntax

The jQuery site lists the basic plugin syntax for jQuery as this:
(function( $ ){
$.fn.myPlugin = function() {
// there's no need to do $(this) because
// "this" is already a jquery object
// $(this) would be the same as $($('#element'));
this.fadeIn('normal', function(){
// the this keyword is a DOM element
});
};
})( jQuery );
I'd just like to understand what is going on there from Javascript's point of view, because it doesn't look like it follows any syntax I've seen JS do before. So here's my list of questions:
If you replace function($)... with a variable, say "the_function", the syntax looks like this:
(the_function)( jQuery );
What is "( jQuery );" doing? Are the parenthesis around the_function really necessary? Why are they there? Is there another piece of code you can give that is similar?
It begins with function( $ ). So it's creating a function, that as far as I can tell will never be run, with the parameter of $, which is already defined? What is going on there?
Thanks for the help!

function(x){
x...
}
is just a function without a name, that takes one argument, "x", and does things with x.
Instead of 'x', which is a common variable name, you can use $, which is a less common variable name, but still legal.
function($){
$...
}
I'll put it in parentheses to make sure it parses as an expression:
(function($){
$....
})
To call a function, you put () after it with a list of arguments. For example, if we wanted to call this function passing in 3 for the value of $ we would do this:
(function($){
$...
})(3);
Just for kicks, let's call this function and pass in jQuery as a variable:
(function($){
$....
})(jQuery);
This creates a new function that takes one argument and then calls that function, passing in jQuery as the value.
WHY?
Because writing jQuery every time you want to do something with jQuery is tedious.
WHY NOT JUST WRITE $ = jQuery?
Because someone else might have defined $ to mean something else. This guarantees that any other meanings of $ are shadowed by this one.

(function( $ ){
})( jQuery );
That is self-executing anonymous function that uses $ in argument so that you can use it ($) instead of jQuery inside that function and without the fear of conflicting with other libraries because in other libraries too $ has special meaning. That pattern is especially useful when writing jQuery plugins.
You can write any character there instead of $ too:
(function(j){
// can do something like
j.fn.function_name = function(x){};
})(jQuery);
Here j will automatically catch up jQuery specified at the end (jQuery). Or you can leave out the argument completely but then you will have to use jQuery keyword all around instead of $ with no fear of collision still. So $ is wrapped in the argument for short-hand so that you can write $ instead of jQuery all around inside that function.
If you even look at the source code of jQuery, you will see that everything is wrapped in between:
(function( window, undefined ) {
// jQuery code
})(window);
That is as can be seen also a self-executing anonymous function with arguments. A window (and undefined) argument is created and is mapped with global window object at the bottom (window). This is popular pattern these days and has little speed gain because here window is will be looked into from the argument rather than global window object which is mapped below.
The $.fn is jQuery's object where you create your new function (which is also an object) or the plugin itself so that jQuery wraps your plugin in its $.fn object and make it available.
Interestingly, I had answered similar question here:
JavaScript / jQuery closure function syntax
You can also check out this article to know more about self-executing functions that I had written:
Javascript Self-executing Functions

The basic plugin syntax allows you to use $ to refer to jQuery in the body of your plugin, regardless of the identify of $ at the time the plugin is loaded. This prevents naming conflicts with other libraries, most notably Prototype.
The syntax defines a function that accepts a parameter known as $ so you can refer to it as $ in the function body, and then immediately invokes that function, putting jQuery in as the argument.
This also helps not pollute the global namespace (so declaring var myvar = 123; in your plugin body won't suddenly define window.myvar), but the main ostensible purpose is to allow you to use $ where $ may have since been redefined.

You're dealing with a self-invoking anonymous function there. It's like "best practice" to wrap a jQuery plugin within such a function to make sure, that the $ sign is bound to the jQuery object.
Example:
(function(foo) {
alert(foo);
}('BAR'));
This would alert BAR when put into a <script> block. The parameter BAR is passed to the function which calls itself.
The same principle is happening in your code, the jQuery object is passed to the function, so $ will refer to the jQuery object for sure.

The jQuery at the end passes itself (jQuery) over to the function, so that you can use the $ symbol within your plugin. You ccould also do
(function(foo){
foo.fn.myPlugin = function() {
this.fadeIn('normal', function(){
});
};
})( jQuery );

To find a clear explanation of this and other modern javascript tricks and common practices, I recommend reading Javascript Garden.
http://bonsaiden.github.com/JavaScript-Garden/
It's especially useful, because many of these patterns are widely used in many libraries but not really explained.

The other answers here are great, but there is one important point that hasn't been addressed. You say:
So it's creating a function, that as far as I can tell will never be run, with the parameter of $, which is already defined?
There is no guarantee that the global variable $ is available. By default, jQuery creates two variables in the global scope: $ and jQuery (where the two are aliases for the same object). However, jQuery can also be run in noConflict mode:
<script type="text/javascript" src="jquery.js"></script>
<script type="text/javascript">
jQuery.noConflict();
</script>
When you call jQuery.noConflict(), the global variable $ is set back to whatever it was before the jQuery library was included. This allows jQuery to be used with other Javascript libraries that also use $ as a global variable.
If you wrote a plugin that relied on $ being an alias for jQuery, then your plugin would not work for users running in noConflict mode.
As others have already explained, the code you posted creates an anonymous function that is called immediately. The global variable jQuery is then passed in to this anonymous function, which is safely aliased as the local variable $ within the function.