Don't use them any more, more modern styles have PCB mounted sprung terminals and most things are wired FSL/EOL now.
You should remove enough isolation from the conductors to do a half turn around the screw.
Wrap the conductor with the 7 strands twisted up together, clockwise to make a half turn around the screw.
The washer is to trap the reed conductors securely, I have always gone under the washer but I would imagine it's designed to be between.