how is an magnetic compass made?

 make your own compass 

magnetise an iron needle using a bar magnet .take a small piece of cork or foam and insert the magnetised needle through it.Take a cup filled with water and let the coark float on it.make sure that that the needle doesnt touch the water ,now your figure compass is ready to work.note the direction in which the needle points when the coark is floating.rotate the cork in different directions.note the direction in which the needle points when the cork begins to float again without rotating.we see that the needle always points in the same  direction,when the cork floats without rotation.

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