'A magnetic compass (as opposed to a gyroscopic compass) consists of a small, lightweight magnet balanced on a nearly frictionless pivot point. The magnet is generally called a needle. One end of the needle is often marked 'N,' for north, or colored in some way to indicate that it points toward north. On the surface, that's all there is to a compass.'
http://www.howstuffworks.com/compass2.htm
Both compasses are magnetic.
Both are attracted to the Earth's magnetic pole (north)
The middle of the needle on a normal compass has a concaved recess in the centre.
The needle balances on a pin which sits inside the recess, allowing it to rotate freely.
The needle in the liquid compass floats on a liquid such as a light oil.
This also rotates freely.
When either compasses are held steady the needle will point to magnetic north. Have a look at this site . It has lots of interesting information ...
One side or part of the side of the ball is magnetised. This part is attracted to the Earth's magnetic pole! Duh! Sorry.
