Use the ExpressDesign into Hoop 
option to create a new design in the ExpressDesign Wizard that is a best-fit to the currently selected hoop and orientation.
If desired, click Change Hoop 
and choose a different hoop size before using ExpressDesign into Hoop.
In the Insert ExpressDesign 
drop-down, click ExpressDesign into Hoop 
and the Choose Design Type page of the ExpressDesign Wizard will appear. Choose the desired design type, then choose a picture and step through the rest of the ExpressDesign Wizard. When you Finish, the new design will be placed in the center of the hoop. Use Save
or Save As
to keep the new design, together with any other designs in the work area. Use Export 
to save in other formats, and optimize for stitching.
Shortcuts
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Home Tab, ExpressDesign Wizard Drop-Down:
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Keys: Alt, H, IR, IH