What Is an Each-Way Bet? Each Way Betting Explained With Examples

Each-way betting splits your stake into two bets: one to win, one to place. 

At first, it’s tricky to understand, but once you fully grasp it, you will see why each-way betting is such a popular bet. An each-way bet is the most popular bet in the Grand National when most of the general public take a punt on the big race. On races with large fields, betting each way is often the best way to get value.

Here’s exactly how it works, with real examples…

What Does Each-Way Betting Mean?

An each-way bet consists of two bets: a win bet and a place bet, hence the term ‘each way.’ This unique structure allows you to profit even if your selection doesn’t finish first, offering an extra layer of security to your betting strategy.

Because you are placing two bets, your total stake is doubled. For example, a £10 each-way bet will cost £20 in total.

• £10 on the Win (only pays out if the horse wins)
• £10 on the Place (pays out if the horse finishes in a designated place)

Where each-way betting gets tricky for newcomers is understanding the place terms, as they vary depending on the number of runners in a race. We’ll break them down below.

As an additional bonus, we are also going to include a profitable each-way betting strategy.

Each-Way Betting Explained in Simple Terms

Each-way betting allows you to receive a return even if your horse doesn’t win, provided it finishes within the bookmaker’s stated place terms. Below, we’ll break down exactly how win and place bets are settled, including race types, place terms, and real-world examples.

The win part is easy to understand. If the horse wins, you make a profit; if it doesn’t, you lose your bet.

The place part will change depending on the number of runners in the race and also what terms the bookmaker is offering. Place terms are closely linked to race competitiveness, which is often measured using official horse racing ratings published by the BHA.

The basic place rules for betting on horse racing are as follows; however, we have to break them down into Graded races and Handicap races:

Graded Races Each Way Terms:

• 2 to 4 runners = win only
• 5 to 7 runners = two places
• 8 or more runners = three places

The biggest difference between Graded races and Handicap races is that there can be 16 or more runners in a Group 1, but it’s still three places unless the bookmaker offers an “extra place” offer.

Handicap Races Each Way Terms:

• 2 to 4 runners = win only
• 5 to 7 runners = two places
• 8 to 15 runners = three places
• 16 or more runners = four places

The next variable is the bookmaker’s terms for each-way betting. The first thing to consider is whether they are offering an extra place?

For example, some bookmakers can offer up to eight places on the Grand National. That is a unique situation, though, because there are 40 runners. You are more likely to see five places from a bookmaker when there are 20 runners in a normal midweek race for example.

These are also special offers that certain bookmakers will do from time to time, and they can be quite valuable, as we will discuss later in this post.

However, let’s focus on the main bookmaker terms. One of the most important things about each-way betting is what odds you are getting in the place terms.

Place Terms

The place terms can range from 1/3 to 1/6. Basically, that means you divide the win part by the place terms to come up with your price. An easy example is 1/4 place terms, and the selection is 4/1. You divide 4/1 into 1/4 and you get 1/1 – which is evens (Decimal odds of 5.0 becomes 2.0 place odds).

The most commonplace terms are 1/5, as bookmakers tend to try and stay away from 1/4 these days.

A general rule of thumb might be:

• 5 to 7 runners = 1/4 odds
• 8 to 15 runners = 1/5 odds
• 16 or more runners = 1/4 odds

These terms can vary wildly depending on your bookmaker, so pay attention to what place terms they are offering.

Something else to be aware of when each-way betting is non-runners. Having a non-runner in the race can completely change the places.

Common Beginner Mistake: Many new bettors forget that non-runners reduce the number of places paid. If you’ve backed a horse each way expecting 3 places and one horse withdraws, your bet may suddenly only pay on 2. Always re-check the updated racecard before the off.

For example, when you place your bet, there might be eight runners in a race, which means we will be getting three places. However, if there was a non-runner the places would be reduced to two.

Each Way Betting Real Example:

Let’s break down a real each-way bet to make sure you fully understand how each-way betting works.

In the image above, you can see that I want to place a £1 bet on the horse Siete De Abril at odds of 6.0 (5/1) and I have chosen to back it each way at terms of 1/4. This means I will be staking £2, let’s go over the outcomes.

1. Siete De Abril loses = -£2
2. Siete De Abril wins the race = £8.25 is returned, £6.25 of that is profit. £5 profit is made on the win bet, and £1.25 is made on the place bet.
3. Siete De Abril loses the race but finishes in the top 3 = £2.25 is returned, £0.25 of that is profit. -£1 is lost on the win bet, £1.25 profit is made on the place bet.

Those are the only 3 outcomes that can happen once your bet is placed, along with the bet potentially being a non-runner, in which case all funds are returned from the bet.

How To Make Money Each Way Betting (Mathematical Strategy):

Each-way betting can be very profitable if you have the right strategies!

In horse racing, you may have heard the term “bad each way race” this means that it’s a bad each-way race for the bookmaker and there is value on offer for the punters. A classic example of a bad each-way race might be eight runners with five outsiders and three horses towards the head of the market. The favourite might be 5/4 and then the second favourite is 7/2, and the third favourite is 9/2.

These scenarios are most common in handicapping, which is where understanding how horse racing handicapping works can help you identify weak place pricing.

The strategy is to back the second or third favourite each way because there is value in the place part of the bet. If you divide 9/2 by 1/5 you get odds of 1.9 to place – but the true price of placing could be much lower because of the make-up of the race.

In the place-only market on Betfair, the price might be trading at 1.6, for example. Plus, you have the added bonus of the third favourite actually winning the race. These are the types of races and situations that bookmakers hate, and they generally don’t like laying those types of each-way bets. It’s fantastic value for the punter.

Check out this video guide…

Extra Places

Many bookmakers now provide ‘Each Way Extra’ promotions, extending the number of places paid out—an opportunity savvy bettors can capitalise on for additional value. For example, instead of paying on the top 4 finishers in a handicap race, a bookmaker might extend it to 6 places.

This can be profitable when bookmakers offer extra places while Betfair Exchange keeps standard place terms. A common strategy is to:

• Find a horse with similar odds on both platforms
• Place an each-way bet with the bookmaker
• Lay the place bet on Betfair Exchange

If the horse finishes in the extra places (e.g., 5th or 6th), you win both bets. While there is a small risk if the horse finishes outside the places, this strategy can be highly profitable over time.

Tip: Use software like OddsMonkey to find these value bets instantly.

Building your understanding of each way betting is a key component in profiting from the sport horse racing. Pairing this knowledge with expert tips can allow you to push your profit margins even further.

When To Not Bet Each Way Explained…

We’ve highlighted a couple of excellent each-way strategies above, but there are also times when you shouldn’t bet each way. As you would have noticed above too, you can’t bet each way when there are fewer than five runners in a race. Even though there is an each-way option for up to seven runners, we wouldn’t recommend betting each way when there are only two places on offer. This is just something that most often isn’t valuable, and it’s best avoided unless you’re really confident it’s a value play.

It is also advisable not to bet each way when the odds are low.

For example, there’s very little value in betting each way on a 6/4 shot. Some punters bet each way at 2/1 – the place odds are 1.4 which is 2/5, this can offer marginal value, but you’re probably better off backing the horse in the place market on Betfair. There would only be a handful of situations where the horse would be trading under 1.4 in the place market on Betfair Exchange – the most likely races where this can happen are maidens.

The best and easiest way to find value betting each way is to check the place market on Betfair Exchange. The place market on Betfair is Place Only and very simple to understand. It will help you spot the “bad each way” prices and profit from the bookmaker’s each-way terms.

Related: Arbitrage Betting: 5 Secrets for Massive Risk-Free Profits!