The magnetization direction is the first step in obtaining magnetism in sintered neodymium iron boron magnets, and it represents the location of the north and south poles in the neodymium magnet.
A magnet is strongest when one of its poles is in contact with the opposing surface. That being said, a circular/ring magnet that is axially magnetized works best when one of its flat surfaces is aligned with the opposite polarity side of another circular or ring magnet's flat surface. While this type of magnet works best when its flat surface is in contact with the opposing surface, this doesn't mean that its sides have no magnetic force. The magnetic force is simply not as strong when used in this way.
Circular magnets can be axially magnetized or radially magnetized. Axially magnetized circular magnets have a north and south pole on their large flat surfaces. Radially magnetized circular magnets have a north and south pole on their circular sides.
