A Each Way Bet

Each Way
An Each Way (EW) bet is basically two bets:
• A win a bet (like above)
• A place bet

Staking
The first thing to know about an Each Way bet is how the staking works. A bet of £25 EW is exactly as it sounds  - "£25 each way"
Two £25 bets.  So £25 EW is a £50 bet in all.

The Place Bet
A place bet is essentially a backup bet - on a horse almost winning at lower odds.   What this means in practice varies but is always quoted with the list of odds as something like:

"Each Way 1/4 1,2,3"
This means that the place bet of your each way bet will pay out at odds of 1/4 of the the win odds is your selection finishes in positions 1,2, or 3.  If you finish 4th or lower it loses.

Example
• You bet £50EW on "RED RUMBLER" in the 3.45 at the Cheltenham Festival at odds of 25-1
• The Each Way terms are 1/5 1,2,3
• Bookmakers takes the £100 stake (£50EW is 2 £50 bets)

There are 3 different outcomes for this bet
1. A complete loss - If the horse finishes out of the places (1,2,3) such as 4th or worse then you lose your entire stake.

2. A place but not a win - If the horse finishes 2nd or 3rd then it has placed, but hasn't won. There is no difference between 2nd and 3rd - they count the same, they are both "a place".

a) The first thing is that the £50 win bet is a loser.
b) However the £50 place bet is a winner which is calculated based on the odds (25-1) or (1/5th), meaning the place odds are 5-1. So your bet wins £50 x 5 = £250 + your stake back giving you a total return of £300.

3. A win - If the horse actually wins then the first thing to realise is that it also places - hence both bets win

a) The win bet pays at 25 x £50 = £1250 + your £50 win stake back
b) The place bet pays the same as above being £250 profit + your £50 place stake back.

Overall you win £1500 plus all of your stake back (£100) = £1,600

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