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When gambling, odds are often the ratio of winnings to the stake and you also get your wager returned. So wagering 1 at 1:5 pays out 6 (5 + 1). If you make 6 wagers of 1, and win once and lose 5 times, you will be paid 6 and finish square.
If there are more horses, the each way bet will cover more places and be more lenient with how you can win. In this example, the bookie is paying 6 places and the terms are 1/5. This means if the horse comes in positions 2-6, you will win a bet at odds of 3.00 (2/1), as this is one-fifth of the original 10/1 odds.