I've never understood all the options for betting..."each way"?
'£1 each way' = 2 separate bets
Say the horse is 40/1 odds, and you put on £1 each way
£1 to win, if it does, you win £40 plus your stake back.
£1 to place (place is 1/2/3/4/5) at quarter odds, so if it came 1/2/3/4/5th, you would win £10
Of course if it won, you would win on both bets.
So when I say £2.50 each way above, it's actually a £5 bet.