In my toy lobster knitting pattern I use a wrapping method to shape the two little pincers at the end of the legs. This is a bit fiddly and a few people have asked for more detailed instructions, so I've made this tutorial.
Here are the steps written out:
1. Follow the instructions to knit the i cord leg until the pattern tells you to stop.
2. Knit the first two stitches on your needle together so you have just one.
3. Wrap your working wool under and back over the needle and then pull that single stitch over it. Do this once more (two times in total).
4. Cut the working wool leaving at least 15cm hanging.
5. Thread a wool needle with this loose end it and pull it back through the single stitch to secure it as you remove this stitch from the needle.
6. Pull the loose end back through the top of your work so that it is in the centre near where the other remaining stitch is. Use the loose end to repeat the two wraps with this remaining stitch.
7. Pull the wool through the remaining stitch to secure it as you remove it from the needle.
8. Secure the loose end with a stitch in the centre.
9. Hide the loose end by pushing your needle into the leg, pulling the end out on the opposite side, and cutting it.
There you go!