Step 3Cut your Fabric
How you fold your fabric and where you cut will depend on the size pants you're making. With toddler sizes, you can use a mere 2 / 3 of a yard and fit both legs within a single width of fabric. With larger sizes, this isn't possible because the crotch makes the pattern too wide to fit twice. This is where a non-directional fabric saves you some money. You can flip your pattern and place it on the other side, sliding it down until the two crotches meet (boy, does that sound dirty) and waste less fabric.
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Anyway ,the part i really don't understand is what you mean by "Fold your fabric just enough to accommodate your pattern" and in the picture it shows it folded in half twice.
So. What you need to do is lay out the 44" of fabric and fold the selvedge edge (the finished edge along the long sides of the fabric) towards the middle only as far as you need to fit the leg pattern on there. Then cut Leg #1 out. Now you need a second leg so you refold and cut Leg #2.