What happens if i buy an 'unlocked' iPhone from eBay?

Hi, apologies if this is a daft question, but i'm not really clued up on this kind of stuff, so i'm wondering if anyone can clear something up for me.

OK, i'm looking into buying an iPhone from eBay. The listing says that it is 'unlocked' - does that mean i just need to buy a sim from say, Orange? Is this easy to do?

Unlocked means that the owner originally bought it from a specific place with a sim and the phone was "locked" to that provider. Now it is unlocked, any sim can be inserted; any provider can be used. However, when you unlcok a phone, I believe it loses its warranty.
Hope this helps.

Yes. Unlocked means it is able to work with any GSM carrier in the world. So as long as you have a SIM ready for it you should be good to go.

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