Who can bind? If you have put your faith in Jesus Christ, you have his power and authority to bind evil and loose God's plans in any situation.
Why do we bind? Jesus commented on the need for binding evil in Matthew 12:29. Jesus explained that we must first bind the strongman before we can plunder his house. When we are facing an evil stronghold in life, we must first use our inherited authority as children of God to bind the evil forces involved. After that, we can loose, or call forth God's plans for restoration.
What happens when we bind? Jesus said, "I tell you the truth, whatever you bind on earth will be bound in heaven, and whatever you loose on earth will be loosed in heaven. Again, I tell you that if two of you on earth agree about anything you ask for, it will be done for you by my Father in heaven. For where two or three come together in my name, there am I with them" Matthew 18:18-20 NIV
(see Matthew 16:19 for an additional reference).
When we bind something, we declare it unlawful (or evil) based on God's word. Because we stand as co-heirs in Jesus Christ, we have his authority to execute this judgment on the forces of evil (Psalm 149:5-9). Our faith in God's word releases the power from heaven that binds (or ties up) the evil we are facing. Similarly, when we loose something on earth, we "permit and declare [it] proper and lawful on earth" based on the scriptures. Everything that we loose or bind must be in accordance with God's word.
Example applications of binding and loosing prayers
Binding the enemy's plans; loosing God's plans
This is based on the Lord's prayer in Matthew 6:10. First we bind the plans of evil in the situation we are facing in the name of Jesus Christ. Then, we call forth God's will to be done on earth as it is in heaven.
"Father in heaven, I stand in faith on the authority I have as a believer in Jesus Christ, and a co-heir to his kingdom. In the name of Jesus Christ, I bind every evil spirit and every evil plan made in this situation. I cancel the enemy's plans and call forth God's plans for this situation. God's word says that God has plans for good and not evil (Jeremiah 29:11) for us and I claim those plans now. Father, I ask that your will be done in this situation, as it is done in heaven. I give thanks and praise to you. In Jesus' name I pray, Amen."
Simple Binding Prayer:
"Father God, I thank you for sending your Son Jesus to die for me, and resurrecting him to sit at your right hand in Heaven right now. I thank you for bestowing upon Him all power and authority over evil. In the name of Jesus Christ, I speak to any evil spirits, especially spirits of *___________ (fill in the blank), I bind you from attacking me now and throughout this day. Leave me now and go straight to Jesus Christ who will deal with you. I am covered and protected by the blood of Jesus Christ. Amen."
*Note that evil spirits often have specific functions and names. Examples of evil spirits include lust, adultery, pride, despair, strife, anger, unforgiveness, discouragement, condemnation, shame, hate, envy, covetousness, idolatry, homosexuality, suicide, obsession, oppression, domination, control and witchcraft. These are just a few of the many possible spirits.
The Blood of Jesus Christ is a powerful weapon for protection from the enemy's attacks. The following prayer is a good one to pray before starting the day:
"Lord, I cover myself and everyone around me with the blood of Jesus. I cover all of the members of my family (call them by name) with the blood of Jesus. I cover my home, my land, my car, my finances, my marriage, my ministry, with the blood of Jesus. In the Name of Jesus Christ, by the power of His blood, I break off every power of the kingdom of darkness and cancel every argument in heaven that has established itself against the plans of God in my life and spoil every attack of the enemy. I call forth, in the name of Jesus, all of God's plans and purposes for my life, and my family. As for me and my house, we shall serve the Lord. Satan, the blood of Jesus is against you and you have no authority over my life. NO WEAPON FORMED AGAINST ME (OR MY FAMILY) SHALL PROSPER!"