Betting to win means that your horse must come first.
An each-way bet means that you think that while your horse could win, it is more likely to come second or third.
An each-way bet is essentially two bets on the same horse. One of them to come first and another bet for them to place, therefore the stake is double a win bet. A £2 each way bet would then be a total of £4.
If your horse comes first you get a return on both the win bet and the place bet. If your horse finished second, however, you lose your win bet but will still get a return on your place bet.
A place bet returns a quarter or a fifth of the odds depending on the amount of runners in the race.