The oil-based magnetic fluids were sysnthesized using ultra-fine $Fe_{3}O_{4}$ powder dispersed in hydrocarbon oil. To synthesize ultra-fine $Fe_{3}O_{4}$, we carried out the experiments varying the pH of reacting medium and the initial concentration of $Fe^{2+}$. We also investigated the amount of oleic acid to obtain a stable dispersion and the proper base oil of MF for loudspeaker application. The limits of adsorbed amount of oleic acid on the $Fe_{3}O_{4}$ surface were approximately 35~40 percents of the total magnetite weight. As the $Fe_{3}O_{4}$ content increased from 0.1g/cc to 0.6g/cc, the viscosity of oil-based magnetic fluid increased from 1,063cP to 1,828cP, and its saturation magnetization at 10kOe increased from 66G to 242G. When we tested the MF sample to a commercial speaker, improvements were noted.