Trim the edges of the rug with the carpet cutter to eliminate any frayed edges on the rug. Make sure the edges of the rug are completely straight.
Peel back the adhesive tape from the paper side of the binding strip. If your strip does not have this adhesive tape, ignore this step. Place the edge of the rug over the adhesive side of the paper.
Place the binding strip in the middle of one of the rug's edges. This will help achieve a more professional look.
Press the binding into the rug's edge until you reach the corner. Don't cut the binding at the edge. Cut the paper piece and bring the binding around the corner. Press the binding into the corner and around the edge.
Cut the excess binding when you have covered all edges with the binding and have returned to the original edge. Trim the binding so that the pieces match exactly. Fuse the two ends together with hot glue.
Apply a line of hot glue between the rug and the binding. Press the binding firmly against the rug while the glue dries. Hold each section in place for about 30 seconds. Glue the entire rug to the binding in this fashion.