When placing an Each Way bet you are actually placing two separate bets.
The first part is a bet on which horse will win.
The second part is a bet that your horse will “place”.
You are placing a bet on the horse winning the race and you are placing a bet on the horse finishing in the first few places for the race. So a £10 Each Way bet actually costs you £20.
The Win part of the bet is fairly easy to understand, your return for that part of the bet is the same as if you had placed that amount on the horse winning the race.
The “place” part of the bet is dependent on the number of runners and the type of race…
Number of Runners/Type of Race
2 to 4 runners – No place betting available
5 to 7 runners – 1st and 2nd at one quarter odds
8 or more runners – 1st, 2nd and 3rd at one fifth odds
Handicaps 12 to15 runners – 1st, 2nd and 3rd at one quarter odds
Handicaps 16 or more runners – 1st, 2nd, 3rd and 4th at one quarter odds
A £10 each way bet on a handicap race with 20 runners will be split in to a £10 bet on your horse to win and a £10 bet on your horse to finish in the top four places, your total stake is therefore £20.
If your horse wins at odds of 10/1 (decimal odds 11.0) the bet will return a profit of £100 on the win part of the bet and £25 on the place part.
If your horse finishes 2nd, 3rd or 4th the win part of the bet is lost whilst the place part realises a profit of £25 so you are £15 up.
If your horse finishes 5th or lower you lose both parts and are therefore £20 down.
Please note, this assumes there have been no rule 4 deductions in the race. See here for an explanation of Rule 4.
If your horse finishes in the places this is also sometimes known as finishing “in the money”.