An each-way bet is common in horse racing and golf. It is two separate bets, so the total cost is double the stake shown. If the selection wins, both parts pay: the win part at the full odds and the place part at a fraction of them. If it only places, only the place part pays. If it finishes outside the places, both lose. The number of places and the fraction, often a quarter or a fifth, vary by event and are set before the bet.
Example
A 10 unit each-way bet costs 20. At 8/1 with a place fraction of 1/4, a horse that only places pays the place part at 2/1, returning 30 in total, a profit of 10. The win part is lost.