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Circular Knitting
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Circular Knitting (aka "knitting in the round")

Circular knitting is technique by which seamless tubes of knitted fabric are produced. It's a popular way to knit sleeves, pullovers, hats, and socks. Circular knitting is sometimes referred to as "knitting in the round".

There are several methods for knitting in the round. Large diameters can be knit on circular needles, which come in a variety of lengths to suit most projects. This is really quite easy once you join your stitches to begin knitting in the round.

Small diameter projects - like socks and sleeves - can be knit in several different ways:

Double point needles (dpns)
Dpns are inexpensive and can be found in a wide range of materials and sizes. Lengths of 5" to 8" are good for knitting socks, adult and child size sleeve cuffs, or baby sleeves. 8" dpns will do a hat, but you'll probably find it easier to use a 16" circular instead. Longer dpns in tiny diameters can sometimes be found - these are for lace knitting.

For more information:
http://www.knitty.com/ISSUEsummer03/FEATtheresa.html
http://knittersreview.com/article_tool.asp?article=/review/profile/010426_b.asp
Two circular needles
This method is quite popular among socknitters who knit 2 socks simultaneously. Half the stitches rest on one needle while you work the other half on the other needle. 24" circulars are usually preferred, but some people like using 16" circulars or one 16" and one 24". One advantage of this method is that you can use a different needle sizes for the instep and sole of the sock, which can be advantageous in certain circumstances. This is a very speedy way to knit in the round.

For more information:
http://www.az.com/~andrade/knit/twocirculars.html
Cat Bordi's book, "Socks Soar on Two Circular Needles"
Magic Loop
You can also knit small diameters, such as socks, in the round using one long circular. This method is called "Magic Loop" and it's becoming more and more popular among socknitters. It works a lot like the 2 circular method; it is just as speedy and there's less fuss because you only have to manage one needle. You can do 2 socks on one really long circular, too.

For more information:
http://www.az.com/~andrade/knit/mloop.html
The Fiber Trends Magic Loop Booklet

If you've never tried circular knitting on a small diameter project, I suggest that you begin with dpns. Dpns are very well known, so you should be able to find help at your LYS if you get stuck. The 2 circular and Magic Loop methods, while popular among socknitters, aren't as well known among knitters who don't do socks.

I have used all three methods for socknitting and I like dpns and Magic Loop the best. I usually cast on and do the first few rounds with dpns, then switch to Magic Loop for the rest of the sock. I find it easier to keep cast on edge straight with dpns because I can lay them out on a table to arrange them before I join in the round. Each knitter is different, though - so you should go with whatever is most comfortable for your own particular knitting style!