A watch cap, sometimes referred to as a ski cap, is a snug-fitted knit hat with a roll at the bottom. The term originates from naval Watchmen who wore these types of hats while on "watch" during cold weather. A beanie is very similar to a watch cap, although it does not have the roll at the bottom and fits closely on the head without additional material extending from the top.
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No difference, except for what it's called nowadays. Kids began calling "ski caps/knit caps/stocking caps," "beanies," in the 90's. In the same way, ladies pants known as "capris" have been called "crop pants," "peddle pushers," "bermudas," and "clam diggers" depending on the decade.
A beanie fits down tight on the head and is rounded. A stocking cap folds up around the hat.