For tape binding, a heavy-duty cotton twill tape is selected in a compatible or contrasting color, it’s your choice. The tape is folded in half lengthwise, the slipped over the unfinished raw edges. The tape and rug comprise the three layers that an industrial sewing machine will secure.
For serging, a specialized machine tightly over sews the raw edge; this thread will match the predominant color of the rug. If you plan to have fringe on your area rug, serging is the way to go.