The electric charge that arises in the simplest textbook situations would be classified as "free charge"—for example, the charge which is transferred in static electricity, or the charge on a capacitor plate. In contrast, "bound charge" arises only in the context of dielectric (polarizable) materials. (All materials are polarizable to some extent.) When such materials are placed in an external electric field, the electrons remain bound to their respective atoms, but shift a microscopic distance in response to the field, so that they're more on one side of the atom than the other. All these microscopic displacements add up to give a macroscopic net charge distribution, and this constitutes the "bound charge".