I'm using a straight stitch. When I went close to the edge, it was fraying the fabric, so I moved further in (prob about 1/8") and since it's satin, it shows. It does an almost miniature fringe look that looks cool, but not for this.
I know I'm supposed to use a blanket stitch, with the majority of it off the fused piece, but I tried once and it just made an awful mess, so I go with a straight stitch. I did a smaller stitch length to control it better.