If there is no existing partition yet, when you choose to create partition, you should be given an option to create a primary partition, or an extended partition (with logical drive greyed out). Is that what you get?
If so, either primary or extended will do, but advisable to create a primary partition first.
After that, you will be asked for partition size. Choose your size, in MB (in Windows 1GB=1024MB). You can use the whole of the disk, or choose a smaller size. After that, you'll be asked to format. Choose NTFS. Accept the other default choices. Wait for formatting to finish and the word "Healthy" appears in the new box for the primary partition.
123GB is quite large. Good idea to create more than one partition, but it really depends on how you are going to use the hdd.
After creating and formatting primary partition, if there is still space left, you can create further partitions (or leave it for the future).
You can use all remaining space to create an Extended partition, which will be created instantly (no formatting). Then right click Extended partition and create logical drives. You can create as many logical drives in Extended partition as you like, and choose size for logical drive. Then format as before.
You don't need to use up all the space within the extended partition all at once. You can leave some for future when you have a better idea of what you need.
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