The magnetized needle of a compass tries to align itself towards the Earth’s field of magnetic force. The magnetized needle balances on a pointed pin or floats on oil to allow it to rotate freely and to reduce friction. A compass needs to be used with care, because if it is near any object that can distort the Earth’s magnetic field it will give a false reading. A nearby object made of iron or steel, or any source of electrical power, will cause the compass needle to swing wildly.

Picture credit: google