Well, I'm pretty sure I'm using the term right. Basically instead of making decreases and increases at the beginning or end of a row, you use a selvage stitch to make things neater and easier to seam. All that is is a normal stitch in stockinette. So if you have a pattern that says to decrease 1 st at the end of the row, you'd knit to 3 st before the end, k2tog, then k1, instead of knitting the last 2 st together.
Anyone, feel free to correct me if I'm wrong. :D
"I will remember that no one has ever been killed or maimed by being adventurous with knitting, no matter how pointy the needles." The Yarn Harlot