The cutting saddle has less rise in the seat with the lowest place or pocket a bit further ahead. This makes it easier for the rider to stay centered. The swells and horn are also very high so the rider can hang onto the horn at a proper angle to push or pull on it to remain stable.
"Cutting" is the process of separating a single cow, steer, or calf, from a larger group. On the cattle ranch this was neccessary to get the calves away from their mothers in order to brand them. It requires a smart horse and an experienced rider. While cutting is not a common rodeo event, it is an exciting event to watch as the horse jumps from side to side to head off the cow.
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