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A chord is a straight line that extends from one point of the circumference of a circle to another point on the circumference and the diameter of a circle is its largest chord
Every chord is a line on the inside between two points on the circle. A diameter does that, so it's a chord. But in order to be a diameter, a chord also has to meet another requirement ... it has to go through the center of the circle. A lot of chords don't do that, so they can't be diameters.
The diameter.
The diameter
Not sure what you mean by "in the middle of a circle". A chord must have each of its ends on the circumference of the circle. If a chord is such that is passes through the centre point of the circle, it is (the longest chord possible and is) called a diameter. Or to put it another way, a diameter of a circle is a chord which passes through the centre point of the circle.