Removing Files on Laptop to Save on iCloud only

I have iCloudDrive installed on my MB Pro. I thought if I saved files in this drive they would be saved on iCloud and that would save me hard disk space. But it seems they are saved on iCloud AND on my laptop. How do I manage that?

I want to remove some of the files from my laptop and save them on iCloud only. Please advise how to do that.