What does "transgender" refer to?
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Although there is much variation in how the word is defined, most people use "transgender" to refer to individuals whose gender identity doesn't fit into the usual rigid male/female categories. Note that the word "transvestite" has a different, much more specific meaning (referring specifically to the practice of cross-dressing—i.e. men or women, whether straight or gay, who wear clothing associated with the opposite gender.
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I think that it refers to people that had a sex changing operation but i am not really sure.
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Girls to boys and Boys to girls. Surgery is involved
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I was under the impression that it was the feeling of being "trapped" in the "wrong" body regardless of your sexual orientation. You can still be considered transgendered without having surgery
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Agreed. You're right