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Traditional Rug Braiding is done with 3 strips of wool from 1”-3″ inches wide but typically the strips are 1 1/2”-1 3/4” wide.  They make a nice plump braid with no raw/torn edges showing.  Braids are laced together with cotton splicing thread and are reversible as the lacing is internal and can not be seen on either side.  There are continuous braided rugs (think an apple peel) or butted rugs where each row is separate (think donuts where each donut gets bigger and bigger).

When braid is added to a hooked piece, the hooking is padded with wool batting and backed/lined with thin wool to make it the same thickness as the braid.  The braid is sewn and laced onto the padded and lined hooking and then each braided row is always butted.
Any fabric can be braided but wool is best to use for a floor rug.  Silk, taffeta, cotton or other fabrics can be braided and added to hooking for pieces for the wall, table, or as pillows.