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YO (yarn over)
There are a multitude of uses for this increase. It forms an eyelet hole so it is often used in decorative lace work. You can us it to form eyelets across a row to thread drawstrings or ribbons through. It's also used in simple buttonholes.
Remember, it forms a hole. This hole is there on purpose!
You may see a UK pattern refer to this a yfwd (yarn forward). It means the same thing.
Wrap the yarn over the right needle, moving it away from you, and then under the right hand needle. It will be looped around the needle.
Making sure the yarn over doesn't slip off the needle, purl or knit the next stitch on the left needle.
When you work the next row, the yarn over is treated the same way as any other stitch. Just knit or purl into it in the usual way as your pattern calls for. Be careful it doesn't slip off before you complete the stitch.
You may see a yarn over referred to as YRN (yarn round needle), YFRN (yarn forward and round needle), YON (yarn over needle) or YFON (yarn forward and over needle). Sometimes the yo is referred to by these other abbreviations in different countries; other times they are used as a way to differentiate between yarn over's that are made between a knit and a purl stitch, two purl stitches, or two knit stitches. Regardless, a yarn over is worked in the same way. You'll only need to move your yarn from the front to the back of the work or vice versa depending on if you are knitting or purling. Remember, yarn in front to purl and yarn in back to knit.
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Knitting Help: Learn to Knit
The Complete Idiot's Guide To Knitting
& Crocheting (3rd edition)
by Barbara Breiter & Gail Diven
Available in book stores everywhere.
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The Complete Idiot's Guide To Knitting and Crocheting, has been a world wide best seller. The third edition was published September, 2006 and is available in bookstores everywhere. Information on the book and a preview of the patterns included is available at Knit A Bit.