An Each Way (EW) bet is basically two bets. A win bet and a place bet.
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" - i.e. Two £25 bets. So £25 EW is a £50 bet in all.
The place part of the bet is essentially a backup bet. You will receive a return on this part of the bet if your selection wins but also if it nearly wins
What this means in practice varies by each horse race but is always quoted with the list of odds as something like this "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.
There are 3 different outcomes for this bet as follows:
Horse Fails to Win or Place
If the horse finishes out of the places (1,2,3) such as 4th or worse then you lose your entire stake.
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".
So remembering that your £50EW is TWO bets - £50 win and £50 place.
A) The first thing is that the £50 win bet is a loser.
B) However the £50 place bet is a winner which as we mentioned above is calculated based on the odds (25-1) and the place fraction (1/5th), meaning in this case the place odds are 5-1.
So that bet wins £50 x 5 = £250 + your stake back giving you a total return of £300.
Putting it together:
So on your £50 EW bet (a bet of £100) you ended up getting £300 back in total = a profit of £200, being the net £250 profit on the place bet and £50 loss on the win bet.
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 exactly as above being £250 profit + your £50 place stake back
Putting it together:
Overall you win £1250 + £250 = £1500, and your account is credited with that plus all of your stake back = £1,600
The place terms for UK Horse Race's are as follows:
Non-Handicap Races
2 4 Runners Win Only
5 7 Runners 1/4 the Odds 1, 2
8 or more Runners 1/5 the Odds 1, 2, 3
Handicap Races
2 4 Runners Win Only
5 7 Runners 1/4 the Odds 1, 2
8 - 11 Runners 1/5 the Odds 1, 2, 3
12 15 Runners 1/4 the Odds 1, 2, 3
16 or more Runners 1/4 the Odds 1, 2, 3, 4
Reversed Forecast Bet
A Forecast bet is one where you predict the first and second in a horse or greyhound race. Usually the dividend is declared to a £1 stake called a computer straight forecast or CSF for short.
The pay out is made according to a fixed scale computed by a complicated formula on the basis, primarily, of the starting price of the horses concerned in the forecast. Basically the bigger the odds the bigger CSF dividend that is paid.
A reversed forecast involves 2 selections in 1 race finishing 1st and 2nd in either order. As such it is two straight forecasts.
I have added a few hypothetical examples below of forecasts so you can see how the odds affect the payout.
3.10 Thirsk
1st 1 Joiner Lee 4-9 F
2nd 2 Shreks Aqui 9-4
CSF £1.83
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