Help with lace sock pattern

I got a free pattern from Joann’s for lace ankle socks. It’s slightly confusing for me.

I’m finished the ribbing, and next round starts the lace pattern.
60 stitches 20 on each needle
1st round :Knit
2nd round: *K3. Yfwd. Sl1. K2tog. psso. Yfwd. Rep from * to end of round.
3rd round Knit
4th round: *yfwd. Sl1. K2tog. psso. yfwd. K3. Repeat from * to end of round. Last 4 rounds form lace pat.

When I do the even rounds, I am losing stitches. What makes up for the k2tog? And on round 3, the yfwd before the repeat? What do I do with that? Isnt that just holding the yarn to the front? How do you knit like that?

The ‘yfwd’ is another term for YO in this pattern, sounds like one of Patons and they use british terms. So k3 yo sk2p, yo and repeat; on R 4, yo sk2p, yo k3 and repeat.

Thanks! I was wondering if there was another term for yo.