[WindowsCentral.com]

The new Word Flow keyboard in Windows Phone 8.1 has a lot going for it, but there's a subtle change in how you edit words using the caret (aka cursor for some, 'blinking vertical line' for others) that you may have missed. In Windows Phone 8.0, you had to hold-n-press to bring up the caret, but now in 8.1 you can just tap in between words. What's more, the caret now has a little circle at the bottom where you can "grab it" with your finger and move it around
Curious about how it works? Watch our short video after the break which will compare and contrast it with Windows Phone 8.0.

Full story from the WPCentral blog...

[j o e l]

The new one seems to be faster but it can be tricky to place sometimes. Often, when I click in between words, I end up selecting an entire word. I wish Left/Right arrows pop up along with the circle, arrows that I can tap on so I can place the cursor more accurately. Much like using the arrow buttons on the keyboard to move the caret.

[yaro da yaar]

Daniel, I want to tell a new thing that there is no need to tap on space between words to get the new cursor. You can also tap on a word to select that word, and again tap on that selected word to get the cursor.

Very easy method to get the cursor