We report on the demonstration of a high figure of merit (FOM) Faraday rotation in a liquid in the terahertz (THz) regime. Using a ferrofluid, a high broadband rotation (11 mrad/mm) is experimentally demonstrated in the frequency range of 0.2–0.9 THz at room temperature. Given the low absorption of the liquid, a high magneto-optical figure of merit (5-16 rad.cm/T) is obtained.

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