Each Way Betting Explained
What Is An Each-Way Bet?
Each Way Betting is a highly popular horse racing strategy as there is potential for excellent returns from a bet. It also encourages bettors to back an outsider in a race.
An Each-Way bet consists of two separate but equal bets – a ‘win’ bet, and a ‘place’ bet. A £5 each-way bet will require a £10 stake. The win part of the each way bet requires the horse to finish 1st. The place part of the each way bet requires the horse to either finish first or in one of the specified number of places – usually 2nd, 3rd or 4th. The number of places is dependent on the size of the field and the bookmaker offer.
If your selection wins the race, both the ‘win’ and ‘place’ parts of the e/w bet are paid out. However, if the horse only places, you will lose the ‘win’ part of the bet, but win the ‘place’ bet.
How Winnings Are Calculated
If you place a £1 each way bet on a horse at 16/1, you will receive a return of £17 if it wins the race. However, winnings are calculated differently if the horse places which is dependent on the bookmaker offer for that race.
The ‘place’ part of the bet is settled at a fraction of the price offered before the race. This is typically 1/4th or 1/5th of the price. So, if the horse places at 1/4 of the odds, the returns are as follows:
- 16/1 @ 1/4 of the odds = 4/1 = £1 @ 4/1 = £5 return.
How To Profit From Enhanced Each Way Offers
E/W offers are common throughout bookmakers and can also be highly profitable. Bookmakers heavily advertise these offers on their websites and social media accounts.
These offers are displayed as Enhanced Each Way Offers which means that the bookmaker will pay out on an extra place e.g. instead of paying out on the regular 3 places, they will pay out on 4 places.
The matched betting strategy used to profit from these enhanced each way offers is to Lay each part of the e/w bet at a Betting Exchange. This means that we need to lay the ‘win’ part and also the ‘lay’ part of the bet.
To understand how this horse racing strategy works, lets look at a theoretical example.
Enhanced Each Way Offer Example
There were 9 horses in this race and the ‘back’ and ‘lay’ odds for each horse were as follows:
Selecting A Horse – Minimising Qualifying Losses
The most apt method of selecting a horse is to calculate which one gives the lowest qualifying loss. The simplest way to do this is to make use of a matched betting calculator (oddsmonkey supply one).
To calculate the back odds of the Each Way bet, it is easier if the odds are converted to fractional odds from decimal odds.
This is done by subtracting 1 from the decimal odds e.g. 6.0 = 5/1. Each way bets are typically paid out at 4/1 (sometimes 5/1), which mean that the decimal odds need to be divided by 4.
Using the matched betting calculator, the horse which gives the lowest qualifying loss (combined win and place qualifying loss), is the horse that will be backed for the offer. From the race above, it is calculated that Stoneham gives the lowest total qualifying loss of £0.73 from a £10 each way bet.
Using the matched betting calculator, it is necessary to calculate the lay stake for both parts of the each way bet separately. The £10 each way bet on Stoneham requires a lay bet to be placed on both the Betting Exchange ‘Win’ market and the ‘Place’ market.
Possible Outcomes of the Offer
There are several possible outcomes that could arise from the results of the race. They are as follows:
- Stoneham WINS = £0.73 LOSS
- 2nd or 3rd =£0.73 LOSS
- 4th = £13.40 PROFIT
- 5th+ = £0.73 LOSS
If Stoneham finishes 4th in this race, the final position will be a £13.40 profit, whilst any other finishing position will yield a £0.73 loss. This method effectively gives odds of 18/1!
Each Way Betting using Extra Place Offers can be a highly profitable method of matched betting . As long as these offers are completed accurately!