Battery Terminal Nuts Driving Me "Nuts"

I hope everyone has a consensus on this question and we don't debate it back and forth forever like a lot of stuff.

Which way does one place the battery terminal nuts that have a round side opposite the hex side? Does the little round part point away from the battery terminal or butt up against it? Are my "nuts" on backwards or correct? (see foto)

And one more thing, why are the nuts manufactured that way? Thank you.