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There are two things you need to change in order to reduce or even eliminate the space before and after a Math object.

  • Inside a Math object, go to Format → Spacing and select Border from the drop down menu Category. Now reduce the Left and Right values → press the Default button so any new Math object will use these values as default. NOTE: old objects will not be affected!
  • Open the Style and formatting editor and select Frame styles → right click on Formula → Modify → Wrap tab → reduce the Left and Right values. Now save that document as your default template.

Done.