The picot edge is one of my favorite turning edge techniques. This method not only creates a natural folding line, but it also adds an interesting edge embellishment. Some ways to use this might be for the hem of a pullover, or perhaps on the edge of hat. I’ll leave the experimenting up to you, because the uses are unlimited to the whatever your imagination can dream up!
When you’re ready to begin your seam, work on the right side row as follows:
K1 (selvage stitch), *yo, k2tog; rep from * to the last stitch, k1 (selvage stitch).
The first photo below shows how this looks open, and the second photo shows it turned under as a decorative edge.
As you can see in this first photo, leaving this open creates an interesting row of openwork, which has both functional and decorative uses as well. For example, knit some i-cord, then weave it over and under each opening, pull closed and you’ve got the makings for the top of a drawstring bag.