Each-way betting is generally limited to horse and greyhound racing, and allows you to split your stake to cover your horse or greyhound to both win and place in a race. To place generally means that your selection finishes in the top three. 

Your stake (the amount of money that you bet) is doubled, with 50% going on the horse to win and 50% going on it to finish in the 'places'. Races will have different each-way ‘terms’ but the standard is to finish in the first three. 

For the win part of your bet, you get the full odds you see on the selection. However, for the each-way part, you only get ⅕ of the odds for the horse to win the race - obviously as there is a much higher likelihood of it finishing in the top three than winning. 

Here’s an example:

• If you bet £20 on a horse to simply win at 10/1 you will receive £220 (£200 winnings + your £20 stake).
• If you bet £20 each way on a horse to win at 10/1 your total stake is £40 (£20 on the horse to win, and £20 to finish in the top three). If the horse wins then you receive £220 (£200 winnings + your £20 stake). By winning, your horse has also finished in the top three, so you also receive £40 more in profit (⅕ of 10/1 is 2/1) + your £20 stake for the each-way part of the bet - so a total of £280. 
• If you bet £20 each way on a horse to win at 10/1 and it only finishes 2nd or 3rd then you will only win the each-way part of the bet so a total of £60 (your £20 stake and the profit of £40). 

In addition, it’s also worth looking out for races with more than 12 runners as you can sometimes receive four or five places as part of the each-way terms.

Want to see how each-way betting applies to the Grand National? You can read more about it here.