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In this section, I will be explaining what the term each-way betting means.
If you are a regular punter, this article may seem a bit silly, but for those who are not, it will hopefully explain everything to you in the easiest way possible without overcomplicating anything.
So what is an each-way bet?
An each-way bet is basically made up of two bets. Half of your stake goes on your selection to win, and the other half goes on your selection to finish within the placings offered by the bookmaker. Be aware that some bookmakers will offer more or fewer places for certain races, so it is worth shopping around.
Example
For example, you place an each-way bet on a horse to win the Grand National at odds of 10/1, with the bookmaker offering four places at 1/5 of the odds. Say your horse finishes second, so let's have a look at how everything is broken down.
One half of your stake loses because the horse did not win the race.
The second half of your stake (£5) place bet wins because your horse finished within the placings offered by the bookmaker.
The 10/1 odds you took at the start now become 2/1 due to the each-way terms, which in this example are 1/5 of the odds.
This means the second half of your stake wins at 2/1 as five, of course, goes into 10 twice; therefore, you receive £10 back as well as your stake, equalling a total return of £15.
The outcome if your horse was to win the race as an each-way bet
The 10/1 odds on the first half of your stake would return £55 (£50 profit and £5 stake)
You then would also win the place section of your bet, which is the second half of your stake, which as explained above, would equal £15
Therefore, your total return would be £70
If your horse finishes outside of the placings offered by the bookmaker, your entire bet is a loser, and the returns are zero.
When is it best to use each-way betting?
The answer I tend to give is that most races offer three places at 1/5 of the odds and for anything below 5/1, I'd avoid placing each way. If a horse places at 5/1, you are at least covering your stake, and anything bigger than 5/1, you are making a profit.
I hope this guide helps you understand the term each way betting, if you are still struggling to understand it feel free to post in the comments and I will happily answer any questions.
