What does factory unlocked mean exactly?

For some reason i feel like this is a stupid question. But I'm not smart when it comes to phones. I want to buy an iphone from Virginmobileusa.com but it is too expensive for me. $650.00. I found a used iphone on ebay, exactly the same as the one that Virgin Mobile is selling for $350.00. My question is, can I use a factory unlocked iphone from ebay for prepaid cards from virgin mobile? Does that make any sense? Someone, anyone please help me!

Factory unlocked simply means the state the phone is in when it comes from the factory before a network is sold it and slaps their locks on it. That means you can start with a sim from O2, then if you don't like them, put in a sim from T-Mobile and have it just work without having to beg an unfriendly and unhelpful customer 'service' rep for an IMEI unlocking code.
So yes, whatever sim you want to stick in there will work fine. Hell, they all will.

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