Welcome To VertexTemplates.com Photoshop Tutorials Area - Button

You can use this pretty little button in everything from website interfaces to logos.

Select the ellipitcal marquee tool, hold down shift click and drag--creating a circle. Make a new layer and fill it with white (doesn't matter if your background is white)

Now right click the layer and click blending options, add these settings

There you go, here's how I used this very same button.