Just found this helpful bit of info on the GLAAD site.
Transgender Glossary of Terms
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The classification of people as male or female. At birth, infants are assigned a sex based on a combination of bodily characteristics including: chromosomes, hormones, internal reproductive organs, and genitals.
One’s internal, personal sense of being a man or a woman (or a boy or girl.) For transgender people, their birth-assigned sex and their own internal sense of gender identity do not match.
External manifestation of one’s gender identity, usually expressed through “masculine,” “feminine” or gender variant behavior, clothing, haircut, voice or body characteristics. Typically, transgender people seek to make their gender expression match their gender identity, rather than their birth-assigned sex.
Describes an individual’s enduring physical, romantic, emotional and/or spiritual attraction to another person. Gender identity and sexual orientation are not the same. Transgender people may be heterosexual, lesbian, gay, or bisexual. For example, a man who becomes a woman and is attracted to other women would be identified as a lesbian.
An umbrella term for people whose gender identity and/or gender expression differs from the sex they were assigned at birth. The term may include but is not limited to: transsexuals, cross-dressers, and other gender-variant people. Transgender people may identify as female-to-male (FTM) or male-to-female (MTF). Use the descriptive term (transgender, transsexual, cross-dresser, FTM or MTF) preferred by the individual. Transgender people may or may not choose to alter their bodies hormonally and/or surgically.
Transsexual (also Transexual)
An older term which originated in the medical and psychological communities. Many transgender people prefer the term “transgender” to “transsexual.” Some transsexual people still prefer to use the term to describe themselves. However, unlike transgender, transsexual is not an umbrella term, and many transgender people do not identify as transsexual. It is best to ask which term an individual prefers.
DEROGATORY see Cross-Dressing
Altering one’s birth sex is not a one-step procedure; it is a complex process that occurs over a long period of time. Transition includes some or all of the following cultural, legal and medical adjustments: telling one’s family, friends, and/or co-workers; changing one’s name and/or sex on legal documents; hormone therapy; and possibly (though not always) some form of surgical alteration.
Sex Reassignment Surgery (SRS)
Refers to surgical alteration, and is only one small part of transition (see Transition above). Preferred term to “sex change operation.” Not all transgender people choose to or can afford to have SRS. Journalists should avoid overemphasizing the importance of SRS to the transition process.
To occasionally wear clothes traditionally associated with people of the other sex. Cross-dressers are usually comfortable with the sex they were assigned at birth and do not wish to change it. “Cross-dresser” should NOT be used to describe someone who has transitioned to live full-time as the other sex, or who intends to do so in the future. Cross-dressing is a form of gender expression and is not necessarily tied to erotic activity. Cross-dressing is not indicative of sexual orientation.
Gender Identity Disorder (GID)
A controversial DSM-IV diagnosis given to transgender and other gender-variant people. Because it labels people as “disordered,” Gender Identity Disorder is often considered offensive. The diagnosis is frequently given to children who don’t conform to expected gender norms in terms of dress, play or behavior. Such children are often subjected to intense psychotherapy, behavior modification and/or institutionalization. Replaces the outdated term “gender dysphoria.”
Describing a person whose biological sex is ambiguous. There are many genetic, hormonal or anatomical variations which make a person’s sex ambiguous (i.e., Klinefelter Syndrome, Adrenal Hyperplasia). Parents and medical professionals usually assign intersex infants a sex and perform surgical operations to conform the infant’s body to that assignment. This practice has become increasingly controversial as intersex adults are speaking out against the practice, accusing doctors of genital mutilation.
TRANSGENDER TERMINOLOGY TO AVOID
PROBLEMATIC: “transgenders,” “a transgender”
PREFERRED: “transgender people,” “a transgender person”
Transgender should be used as an adjective, not as a noun. Do not say, “Tony is a transgender,” or “The parade included many transgenders.” Instead say, “Tony is a transgender person,” or “The parade included many transgender people.”
The word transgender never needs the extraneous “ed” at the end of the word. In fact, such a construction is grammatically incorrect. Only verbs can be transformed into participles by adding “-ed” to the end of the word, and transgender is an adjective, not a verb.
PROBLEMATIC: “sex change,” “pre-operative,” “post-operative”
Referring to a sex change operation, or using terms such as pre- or post-operative, inaccurately suggests that one must have surgery in order to truly change one’s sex.
PREFERRED: “intersex person”
The word “hermaphrodite” is an outdated, stigmatizing and misleading word, usually used to sensationalize intersex people.
Defamatory: “deceptive,” “fooling,” “pretending,” “posing,” or “masquerading”
Gender identity is an integral part of a person’s identity. Please do not characterize transgender people as “deceptive,” as “fooling” other people, or as “pretending” to be, “posing” or “masquerading” as a man or a woman. Such descriptions are extremely insulting.
Defamatory: “she-male,” “he-she,” “it,” “trannie,” “tranny,” “gender-bender”
These words only serve to dehumanize transgender people and should not be used (See Defamatory Language).
NAMES & PRONOUN USAGE
We encourage you to use a transgender person’s chosen name. Often transgender people cannot afford a legal name change or are not yet old enough to change their name legally. They should be afforded the same respect for their chosen name as anyone else who lives by a name other than their birth name (e.g., celebrities).
We also encourage you to ask transgender people which pronoun they would like you to use. A person who identifies as a certain gender, whether or not they have taken hormones or had surgery, should be referred to using the pronouns appropriate for that gender.
If it is not possible to ask the person which pronoun he or she prefers, use the pronoun that is consistent with the person’s appearance and gender expression. For example, if the person wears a dress and uses the name “Susan,” feminine pronouns are appropriate.
It is never appropriate to put quotation marks around either the transgender person’s chosen name or the pronoun that reflects their gender identity.