When I was in Australia a few years ago, students told me that this is referred to as “the American bind-off”. I’ve always just thought of it as the sinker post bind off!
Silver Reed calls them sinker posts – Brother manuals refer to gate pegs. All they are is metal dividers between the needles that help the stitches form and can be used to advantage when binding off.
With the transfer tool bind-off, the stitches are transferred from needle to needle behind the sinker posts/gate pegs, while the free yarn stays in front of the posts/pegs to knit each new stitch by hand.
With the latch tool bind-off, the yarn stays behind the posts/pegs and the latch tool in front of them. The tool hooks onto a new stitch in front of the posts/pegs and after the yarn is fed into the hook of the tool behind the posts/peg, the old stitch slides off over the new one.
Transfer tool edge
On machines that have neither sinker posts nor gate pegs, you can achieve the same thing by bringing the adjacent, empty needle back to holding position and passing the yarn around it. Right after you empty a needle, bring it out to holding position so the yarn can wrap around it. Where you are done, all the needles will be in holding position with yarn wrapped over each shaft.
Whether you catch the yarn around posts/pegs or an empty needle, you can simply lift those loops off the machine without fear of dropping anything because those are not stitches. The stitches have been secured by the bind off. Those loops just serve to space the bound off stitches.
What is the advantage of working this way? First of all, the knitting is fully supported while you work – right up to the last few stitches. This means that the knitting doesn’t stretch or mis-shape as it hangs from fewer and fewer stitches. It also means you can leave weights on the machine, which ultimately means the stitches are less apt to split as you manipulate them with the tools.
Secondly, the posts/pegs/empty needles assure you that the stitches cannot tighten up and form a stingy, tight edge. This will help retain as much stretch as possible. It also means that each stitch will be the same size.