An each way (e/w) bet is a bet of two parts – one for the win, and one for the place.
If your selection wins you will be paid the returns for the win and for the place. If your selection places you will only be paid the place win returns.
For example – you place a £5 e/w bet at a price of 14/1 with e/w terms of the first five places at ¼ the odds.
If the horse wins: £5 at 14/1 pays £75 -> (£5 x 14 = £70 plus your £5 stake back).
If the horse places: A quarter of 14/1 is 3.5/1 (14 divided by 4) so the place part of the bet is paid as £5 at 3.5/1 pays £22.50 -> (£5 x 3.5 = £17.50 plus your £5 stake back).