When someone says "Trading x for a craftable hat" (generally comes in the form of "Trading one refined per craftable hat), what exactly is it that they mean?
The term refers to any hat that can and will be used in the Rebuild Headgear crafting recipe (combine any 2 hats for a random hat).
If the description of a hat says (Not Usable in Crafting), then that hat is uncraftable, and generally sells for less as it can't be used in creating another hat.
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@Mr Smooth: The market price of most normal hats is lower than crafting value, and that's precisely why people would rather trade than craft. – BoltClock Aug 31 '11 at 7:47