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In what position is one to tie the Tzitzis:
A. Tying the Tzitzis in a way that the braided area hits the corner? 
When one ties the Tzitzis to the garment one is to be particular that the Tzitzis is tied in a way that the hanging braid touches and hits the [side] corner of the garment. This is in contrast to the braid hanging down and hovering over the ground. Due to this, one must beware upon tying the Tzitzis to the corner, to tie it in accordance to the way one wears the Tallis; in the way that will assure that the braid hits the corner and does not dangle straight over the ground while he wears it. [Practically, by a Tallis Katan that has two corner holes, as is the Chassidic custom, this issue is not relevant, as the Tzitzis will always hit the corner. However by the Tallis Katan that only has one hole, this matter is relevant, and one needs to tie the Tzitzis to the sides of the corners as opposed to the bottom of the corners. [See picture] By the Tallis Gadol, the Tzitzis is to be tied according to one’s method of wearing. According to the Chabad method of wearing the Tallis Gadol, all the Tzitzis is to be tied to the bottom of each corner [when the Tallis is spread length wise from top to bottom]. Therefore, the small side hole is also to be made by the bottom of each corner.]
Tying the Tzitzis in a way that the first knot remains in the legal corner of 4-6 cm: Besides for the braid hitting the edge of the side corner of the Tallis while it is worn, one is to also tie the first knot of the braid in a way that it rests above 4 cm from the side of the corner. These knots are to rest above the 4 cm mark every time that one wears the Tallis and not just by the initial tying.
How to accomplish the above-Tightening the first knot and making a small side hole by the Tallis Gadol? By a Tallis Gadol in which only one hole is made [as well as by a Tallis Katan for those that only make one hole] the knot is to be tightened and fastened on the proper side of the corner in a way that the first knot rests 4 cm above the bottom of the corner, and will not come to slide down below this mark. [Although this tightening folds the sides of the corner in a way that the hole is now adjacent to the first knot [see picture] this does not pose any Halachic issue. This accomplishes both that the braid hits the corner while the Tallis is worn and that the first knot remains 4 cm above the corner.] Nonetheless, it is a good advice to make another small hole at the edge of the side of the width of the Tallis, which is above 4 cm from the bottom of the corner, and have the first set of knots fastened to that hole, as explained in B. Practically, this is the Chabad custom.
The Tzitzis is to be tied to the corner in a way that a) the first knot rests 4 cm above the corner, and b) the Tzitzis hits the corner when it is worn, and does not hover over the ground. By a two hole Tallis Katan this is automatically accomplished by tying the first knots onto the two holes. In order to accomplish this by a single hole Tallis, one must tie the first knot of the Tzitzis very tight on the side of the corner, hence preventing the knot from falling below the 4cm mark. The Chabad custom by the Tallis Gadol is to make a side hole onto which the two knots are fastened after they are made, hence preventing them from falling below the 4 cm mark.
What is the law if one tied the Tzitzis onto the wrong side of the corner and the Tzitzis thus hangs over the ground without hitting the side of the corner?
The Tzitzis is valid.
May one tie the Tzitzis in diagonal, by to the pointed edge of the corner?
It is forbidden to tie the Tzitzis in a way that it hangs on the corner edge in a diagonal form.
B. How to tie the first knot by a Tallis Gadol that contains a side hole?
The Chabad custom, as advised by Admur in the Siddur, is to make another small hole at the edge of the side of the width of the Tallis, which is above 4 cm from the bottom of the corner. [See previous Halacha!] The following is how this hole is to be used in the tying process: After properly making the first [double] knot, prior to beginning to make the loops, one inserts the long string which will be used to make the loops, through this hole. [One tightens this string until it is fastened onto the hole and hence secures that the first two knots will always remain above the 4 cm mark. One then continues with the first set of loops.]
May one tighten the Tzitzis in a way that it presses and folds the corner material that is between the edge and the hole?
Some Poskim rule one may even initially tighten the Tzitzis in a way that it causes the corner material to fold and be pressed together. Furthermore, doing so is even a Hiddur. Others however hold that this is not initially to be done. It is possible to learn from Admur in the Siddur like either the first or second opinion. Practically, the custom of the world is like the first opinion, and so was done by various Gedolei Yisrael. However amongst Chabad Chassidim many are stringent in this matter. [The above matter is only relevant by Talleisim that contain only one hole, such as a Tallis Gadol, and a Tallis Katan of the non-Chassidic sects. However by the Tallis Katan of Chassidim, this entire matter is irrelevant, as the Tzitzis is never tied onto the side of the Tallis and hence folding of the sides is inapplicable.]
What is the law if one placed the long string in the small hole of the Tallis Gadol prior to tying the first two knots?
If one entered the string into the main corner hole, and then entered it into the side hole prior to making the first two knots, one is to undo the Tzitzis and retie them properly. However, some Poskim are lenient and rule this may be done even initially, and that this was the custom in previous times, and certainly it is valid Bedieved.
One placed the long string only in the small hole: If one initially entered the Shamash [or any of the 4 strings] into the small side hole of the Tallis Gadol, and did not enter it at all into the main inner hole, then one is to undo the Tzitzis and retie it properly. One is to avoid wearing the Tzitzis, and certainly is not to wear the Tzitzis with a blessing, until it is fixed.
C. How to tie the Tzitzis by a Tallis Katan with two holes?
One is to tie the Tzitzis to the external side of the Tallis which is visible when worn. [Thus, by our Tallis Katan which is always worn with the silk corners facing the inner side, one is not to make the Tzitzis on the silk side of the corners. See Q&A regarding Bedieved!]
What is the law if one tied the Tzitzis to the back corner of the two hole Tallis Katan?
The Tzitzis remains valid and may be worn with a blessing. This applies even if some of the Tzitzis were made on the outer corner and some on the inner corner. Nevertheless, it is proper to undo the Tzitzis of the inner corners and replace them on the outer side of the corner, as explained above.
 11/34; Siddur Admur [letter 10-11 in Siddur Raskin]; Michaber 11/15 in name of Kol Bo and Rokeiach; Rashi Menachos 42a
Other opinions: Some opinions rule it is not necessary for the Tzitzis to hit the side of the corner while wearing it, and so is the custom of the world not to be particular in this matter. [Maharam in name of Maharash brought in Birkeiy Yosef, Shaareiy Teshuvah 15/26]
 The reason: As the verse states “Al Kanfei Bigdeihem”, that the Tzitzis are to be hung on the corners of the garment. [ibid] It does not suffice that the strings which precede the first knot [by a one hole Tallis, such as by a Tallis Gadol according to all] hit the corner area and is above 4 cm, as the verse states that the Gdil is to be on the corner, and the loose strings that come out of the hole until the first knot is not yet called a Gedil. [Siddur Admur]
 Admur ibid; Siddur ibid; Beis Yosef in name of Mahrahm; Chazon Ish 3/12; See Biur Halacha 11/15; Shaareiy Teshuvah 11/26; Yad Efraim 11/15
This means as follows: Every corner of a garment contains two sides, and it is possible to tie the Tzitzis on either side. [This refers to a Tallis Gadol, or Tallis Katan that only has one hole, in which case the first knot can be made by either side of the corner.] Depending on which side the Tzitzis is tied to, and to how one wears the Tallis, will determine whether the braid hits the side of the corner or hovers over the ground. By a Tallis Katan [with one hole] which is worn length wise from bottom to top, the Tzitzis must be tied to the sides of the corner [as opposed to the bottom of the corner]. [see picture] By a Tallis Gadol in which the Tallis is worn with the width from top to bottom [the two ends of the length of the Tallis sit by ones sides, one in front and one in back] the two bottom Tzitzis are to be tied to the bottom of the corner. However the two top Tzitzis would need to be tied in accordance to the way the Tallis is worn. Those that wear the Tallis Gadol in a way that the two front corners of the Tallis are not draped over the shoulders, and rather hang loosely over the arms, need to tie the two front Tzitzis to the bottom of the length of the Tallis. Some wear it in a way that the Tzitzis needs to be tied to the side of the length of the Tallis. [Admur ibid; See Siddur ibid; Chazon Ish 3/12; See Biur Halacha 11/15] For instructions regarding which side to tie the Tzitzis onto a Tallis Gadol that is worn like the Arizal during Davening-see Siddur Admur letter 11.
 Siddur Admur; This opinion is discussed in Measef Lechol Hamachanos 11/76; Likkutei Maharich writes that when the Yitav Lev saw these words of Admur he asked for his Tzitzis to be redone; See Siddur Rav Raskin p. 36-38
Other opinions: Some Poskim rule it is not necessary that the first knot rest above 4 cm from the corner. [Ashel Avraham Butchach Kama and Tinyana 11/5; Nevertheless he concludes that he does not want to swerve from Admur’s ruling]
 The reason: As the verse states “Veasu Lahem Tzitzis Al Kanfei” and not Bikanfei”. From here it is learned that the knot is to be above 4 cm from the edge of the corner. It does not suffice that the strings which precede the first knot [by a one hole Tallis, such as by a Tallis Gadol according to all] hit the corner area and is above 4 cm, as the verse states that the Gdil is to be on the corner, and the loose strings that come out of the hole, until the first knot, is not yet called a Gedil. [Siddur Admur] To note however that according to Admur and those Poskim that hold that we measure 4 cm also from the width, it is not possible to attain that the first knot be a 4 cm distance also from the width and also from the length unless one makes two holes by the Tallis. [See Ashel Avraham Butchach Tinayna 11; Mishmeres Shalom 11/3; Rav Raskin footnote 29]
 Siddur Admur; See Piskei Hasiddur 30 and Tehila Ledavid 11/11 that ask on Admur why it must remain above this 4 cm mark constantly, if the law is that even if the hole afterwards tore the Tzitzis remains valid, and certainly here if the hole did not tear and it simply slid down below the 4 cm mark it should remain valid. Possibly the answer to their question is that this law of having the Gdil hit the corner is not a law of making the Tzitzis but a law of wearing the Tzitzis, and hence every time it is worn the Gdil is to hit the corner. [See Siddur of Rav Raskin pp. 38-39]
 Siddur Admur
 By a Tallis Katan with two holes this is automatically accomplished by tightening the first knot onto the two holes.
 As explained in B!
 So is implied here from Siddur Admur which writes “And also if he strengthens and fastens the knot onto the side of the Tallis”; and so explains Aruch Hashulchan 11/19; However see Piskeiy Hasiddur 30 which possibly explains Admur in the Siddur to say that one tightens it until it reaches the edge of the Tallis, without folding the corner material.
 As explained in 11/14 and Chapter 3 Halacha 11a, and so is implied here from Siddur Admur which writes “And also if he strengthens and fastens the knot onto the side of the Tallis”; Aruch Hashulchan 11/19; However see Piskeiy Hasiddur 30 which possibly explains Admur in the Siddur to hold that one should not fold the sides while tightening the knots. See next Halacha and Q&A; See Siddur of Rav Raskin pp. 38-39
 Thus, regardless of Admur’s stringency of the Siddur to have the first knots above 4 cm, in order to properly fulfill the ruling in the Shulchan Aruch of Michaber/Admur that the Gdil is to hit the corner, one is to follow the above and tighten the Tzitzis to the side. [See Aruch Hashulchan ibid]
 Siddur Admur
The reason: According to Admur in the Siddur, aside for the requirement to have the braid hit the corner as written in 11/34, one must also have the first knot remain above 4 cm from the corner. Now, even if initially one tightens the first knot to the side of the corner in a way that it is 4 cm above, it is difficult to ascertain that this knot will constantly remain 4 cm above and not slide with time below the 4 cm mark. It is difficult to require one to constantly check the position of the first knot, especially during prayer. Thus, the best advice to achieve a permanent solution to prevent the first knot from falling below the 4 cm mark, is to make a small hole at the edge of the corner that is 4 cm above the corner. After properly making the first [double] knot, prior to beginning to make the loops, one inserts the long string which will be used to make the loops, through this hole, and hence secures that the first two knots will always remain above the 4 cm mark. [Siddur ibid; See Piskeiy Hasiddur 30]
Other opinions: Some Poskim rule one is not to make a side hole, being that the Tzitzis must be tied to the exact dimensions of the corner, and the string that is placed through this hole is not 4-6 cm from the bottom in both width and length. [Ashel Avraham Butchach Tinayna 11; See also Shiureiy Torah p. 373 that explains it is for this reason that Admur stated to place the string into the side hole only after making the two knots.]
 Sefer Haminhagim p. 7 [English]
Thus, according to Chabad custom to use two holes by a Tallis Katan and a side hole by a Tallis Gadol, the issues of having the knot fall under the corner, or below the 4 cm mark is completely avoided.
 M”A 11/24
 The reason: The reason for this is because when the Tzitzis are hanging in a diagonal it appears like there are 8 Tzitzis, as it appears as if it is made for each side of the corner. Alternatively, it is because placing it in diagonal is a custom of the Karaits. [See M”A 11/24]
 Siddur Admur
 The reason: As the Tzitzis must be tied to the exact dimensions of the corner, and the string that is placed through this hole is not 4-6 cm from the bottom in both width and length, thus Admur states to place the string into the side hole only after making the two knots in the proper dimensions of the corner. [Shiureiy Torah p. 373]
 If one leaves this string loose, then it is possible, especially with the passing of time, for the first set of knots to fall below the 4 cm mark. It is therefore imperative to tighten the string in a way that it will not allow the first knot to fall below the 4 cm mark.
 Makor Chaim 11; Aruch Hashulchan 11/19; Shulchan Hatahor 11/2; Ketzos Hashulchan 6/6; Leket Yosher p. 8 that so was the custom of the Terumos Hadeshen; Poskim in Piskeiy Teshuvos 11/22 footnote 158
 Doing so is a Hiddur being that it secures that the Tzitzis will hit the side of the corner and that the knot will remain above the 4 cm mark, as explained in Chapter 4 Halacha 10. [Ketzos Hashulchan ibid; Piskeiy Teshuvos ibid]
 Ashel Avraham Telisa; Chayeh Adam 11 Nishmas Adam 3; and other Poskim brought in Piskeiy Teshuvos ibid; To note however that in Ashel Avraham Tinyana 11 he writes there is no problem with doing so and that so is the custom.
 See Piskeiy Hasiddur 30 [and Siddur Raskin footnote 41] that one can possibly learn from Admur in the Siddur that one is initially not to tighten the Tzitzis onto the side in a way that it folds the material. This can be deduced from Admur from the fact that if this were to be allowed, then why did he need to novelize the making of a small side hole by the Tallis Gadol, if one can simply tighten the first knot and hence secure it that it never fall. Vetzaruch Iyun! [Piskeiy Hasiddur ibid] On the other hand, the simple wording of Admur in the Siddur implies that the knot may be tightened and cause a fold as Admur writes “And also if he strengthens and fastens the knot onto the side of the Tallis”. Thus [in the author’s opinion] Admur’s opinion in the Siddur is inconclusive. To note that the Piskeiy Hasiddur concludes with a Tzaruch Iyun and does not conclusively state that one may not fold it. In Ketzos Hashulchan 6/6 he rules one is even initially to cause the side to fold, as explained above.
 Ashel Avraham ibid
 Leket Yosher p. 8 that so was the custom of the Terumos Hadeshen; Rabbanim mentioned in Piskeiy Teshuvos 11/22 footnote 158
 I was told by Harav Eliyahu Landa Shlita that one must be careful in this matter, in order so the corner remain spread open to its proper Shiur during the tying, as rules the second opinion here. This was the custom he received, and that he has seen done in all our circles. To note however that the Ketzos Hashulchan 6/6, who was a famed Chabad Chassid and Rav, did not mention any tradition amongst Chabad Chassidim.
 Shiureiy Torah p. 373 based on Admur in Siddur; Zichronos of HaRav Yaakov Landau, that so he was told by the Rebbe Rashab; See Siddur Rav Raskin p. 40; Harav Eliyahu Landa Shlita told me as follows: The Rebbe Rashab once gave his Tallis to someone to tie its Tzitzis onto it and that person entered the Shamash into the side hole prior to the two knots being made. The Rebbe Rashab gave the Tallis to Harav Yaakov Landa and asked him to undo it and retie it.
The reason: As the strings are required to be tied to the proper dimensions of the corner, as written in Chapter 3 Halacha 11, and according to Admur in the Siddur [see chapter 3 Halacha 11F] the two holes of the Tallis Katan must be made within the proper corner dimensions. Thus, in this case as well that the string was accidently placed through the side hole which is outside the corner dimensions, one is required to remove them and replace them. [Shiureiy Torah ibid]
 P”M 11 brought in Biur Halacha 11/9 “Yaaseh”; Chazon Ish 3/12; Implication of Poskim in Shulchan Aruch who omit the above requirement; Piskeiy Teshuvos 11/21; See also Siddur Admur that in the times of the Gemara the single hole was made on the side of the Tallis.
The reason: As it is not necessary to make both holes specifically in the legal corner dimensions, and rather only the more inner hole, or top hole, must be within this dimension. They rule the knot is to even initially be made on the most outer hole. [ibid]
 See chapter 3 Halacha 11A!
The reason: As all four Tzitzis strings must be placed in the proper Halachic corner dimensions which are 4 cm distanced from both the bottom and side of the corner [Admur 11/17; Michaber 11/10 in second and main opinion], and if not the Tzitzis is invalid. [Admur 11/14] However, see Siddur Admur “In order to be Yotzei according to all” which suggests that if Bedieved the hole was made outside of 4-6 cm from the side, it is valid Bedieved, as rules the 1st opinion in Michaber ibid. Vetzaruch Iyun. However from the Shulchan Aruch ibid it is clear that Admur rules it is invalid, as he completely omits this lenient opinion. Therefore, one is to be stringent and not wear this Tallis until it is fixed.
 Siddur Admur which states “One must to be careful that the Tzitzis be hanging on the upper, external, part of the clothing and not on the inner lower part”; Olas Tamid 11/12; Likkutei Maharich in name of Kitzur Shlah; Arizal brought in Shaar Hakavanos Tzitzis 6; Peri Eitz Chaim Tzitzis 1; Nagid Mitzvah. “A Tallis [Katan that has two holes in the corner] is not to be worn inside out.”
The reason: As the verse states “Ureisem Oso” that the Tzitzis must be seen [Admur ibid] and when worn inside out, the inner corner blocks that area of the fringe from visibility. [See Tehila Ledavid 11/8; Ashel Avraham Butchach Tinyana 16] There is also Kabalistic reasons mentioned behind this. [Arizal ibid]
 Tehila Ledavid 11/8; Piskeiy Teshuvos 11/21