You can trim handles from outgoing and incoming shots and use them to add a dissolve.
To create handles for a dissolve:
- In the Storyboard, select the shot to the left of the cut point to which you want to add a dissolve.
- In the Edit menu, enable Retrim.
- Enable Dissolve, and then drag the Dissolve slider to set the duration or right-click the slider for the pop-up entry.
Frames are automatically trimmed from the tail of the outgoing clip and the head of the incoming clip.