Use the first stitch to pick of both pieces of fabric along the folded edges.
The second stitch then goes throughout the middle of the lucet cord. When you pull tight it will close the seam with the cord on top.
I stitched the edges closed with my gold Gutterman thread and they edges look very nice. It's a very simple medieval period technique to decorate edge seams.
Above is an example of a pouch with braids along for seam finishing. The braids on this one look like finger loop braiding. Dutch circa 1617/1622
Above is another good example - Dutch?/Italian? cir cal 1580+