The simplest bet is to win - that is, you stake a sum on your fancied horse and if it wins you collect your stake plus a bonus according to the odds offered - if you bet one pound on a horse quoted at 7-1 you get your one pound back plus 7 pounds from the bookmaker.
An Each Way bet is in fact two bets, one to win and one to place. It's a kind of insurance policy - if your horse doesn't win but comes 2nd or 3rd (or 4th in handicap races with a big field), you get 1/4 or 1/5 of the odds according to the bookmaker. Clearly it's not worth betting Each Way at odds shorter than 5-1.
By the way, it's not possible to make a place bet alone, except on The Tote.