Multiple transmit and receive can be used to form multiple-input multiple-output (MIMO) channels to increase the capacity and data rate. The key advantage of employing multiple antennas is to get reliable performance through diversity and the achievable higher data rate through spatial multiplexing. In MIMO system the some information can transmitted and received from multiple antennas simultaneously since the fading for each link between a pair of transmit and receive antennas can usually be considered to be independent, the probability that the information is detected accurately is higher. Fading of the signal can be mitigated by different diversity techniques, where the signal is transmitted through multiple independent fading paths in terms of the time, frequency or space and combined constructively at the receiver. In this paper we analyze Bit Error Rate (BER) using BPSK modulation and then optimum modulation is analyzed.