FoG

There are two parts to an each way bet - the Win part and the Place part. The place depends on the terms but usually applies if your selection finishes in the top 3.  Your payout for placing will be a fixed fraction of the win odds.  There are two parts to the bet so if you bet €10 each way the total bet will cost you €20. Each part of the bet is settled separately. So for example. You bet €10 each way on Absainte @ 21.0. This counts as two bets, firstly €10 @ 21.0 for Absainte to win, but you also get €10 on Absainte to place (1st, 2nd or 3rd) at one-fifth odds which in this case is 5.0 (21.0 in decimal odds is 20/1 in fractional odds, one-fifth of 20 is 4, gives 4/1 to place in fractional odds or 5.0 in decimal odds). So your position would be. Absainte wins: You win both bets the win part returns €210 and the place part returns €50. The total return is €260. This is €240 profit after your stakes are deducted. Absainte places only: If you win only the place ...

So this is a theory in progress. I hope some people find it useful as a starting point to trading the place market. A bad each way race could be for example an 8 or 9 runner race where there is a short odds on favourite and a few high priced rags (33/1 and bigger perhaps). This skews the true odds of a horse placing so that the 1/5 odds offered by bookies is higher than the odds on the exchange "to place" market.  EW arbers identify bad ew races. So they can back each way on the bookies and lay off on the exchange for guaranteed profit. They will make a small loss perhaps on the win part of the bet, but a big win on the place part as it can often be a big arb. Now ew arbers will generally put alot of money into the exchange. They have no real concept that the lays that they are making on the exchange are particularly good value for them. All that they know is that the lay is smaller than the back price they are getting at the bookie. They usually will find that over tim...