My favorite way to finish a rug is to whip the edge with wool yarn over cording. Here is the method I use to whip a rug. I steam it on both sides, starting on the back side then turning it over and doing the front. Steaming helps the rug to lay flat and fluff up the loops. After the rug has been steamed I draw a line about 1 1/4″ to 1 1/2″ outside the hooking and sew a zig zag stitch on the line. I zig zag stitch the corners square first then come back and zig zag stitch them at an angle. This allows me to cut some of the backing off at the corner to reduce bulk in that area. I cut off the excess backing on the outside of the sewn line.
With the front side facing up, I lay the cording on the outer edge of the backing and roll it tightly towards the hooked loops. I roll about 3″ to 4″ at a time and use Wonder Clips to hold the rolled edge in place. I use lots of clips to hold the edge.
I whip with about a 3 yard length of wool yarn, doubled over. I whip from left to right and bury the tails of the started length of yarn in the crease, between the rolled edge and the hooked loops. I put the needle in from the top, in the same hole as the hooked loop, and pull the yarn down through the backing. When I come to the end of my length of yarn, I stitch it through the whipped yarn on the back.
I continue whipping the yarn around the rug until done, changing colors to match the hooked loops (when desired). The rug I hooked and whipped was designed by Cactus Needle and is called Little Kitty. It measures 10″ x 13 3/4″. It can be purchased from Nola Heidbreder on her website.