Like old blankets my mother had with the satin binding all around, the fabric fits into the entire 2" piece. May seem wasteful but it works much better this way and the binding holds it shape much better. If you do not want to waste thee design fabrice. just sew on a 1.5 in band all around and use that to insert into the folded binding. Have fun and remember, there is not one way above another. It's all in the eye of the beholder.