How many people in this world are transgender?

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It depends on your definition of Transgendered. Only falling under the general term of transsexual.
The DSM1 IV estimates 1 in 30 thousand males are transgendered and 1 in 100 thousand females have identified themselves as having very strong trans feelings. {Definition of Transgender being born one physical sex, but their actual sex is different. Does not account for crossdressers2, gender benders3, people who are blends4, intersexed5, duo-genders6 or others also called gender queer7.}
Lynn Conway, a well known activist for transsexuals, estimates that 1 in 1,000 males has had GRS8 or SRS9. {in the US} If this is correct then there would be about 500,000 transgendered males in the US who have had SRS/GRS.
Using Transgendered as Generic
No one knows the actual number: it's not printed on people's foreheads. Using the broad term transgendered as anyone not conforming to generic society's binary set of genders and gender roles, many people are 'closeted' and so can't be counted, many don't even realize that they actually are transgendered and not crazy, but this would include genderbenders, dual-genders, crossdressers/transvestites, intersexed, blends and gender queer persons:
If 1 in 1,000 is a transsexual who has had surgery, at least another 1 in 1,000 hasn't had the surgery but is in some way or another transgendered. Using the above calculation, 1,000,000 (1 million) men in the U.S. are transgendered, making it 1 in 500. If this applies worldwide (broad assumption) then 14,000,000 (14 million) men worldwide are transgendered - not including women. Using the DSM IV's estimate of 3 : 1 (transsexuals) then 14,000,000 men and 4,666,000 women for a total guesstimate of at least 18,666,000 transgendered persons worldwide. Footnotes:
  1. DSM = Diagnostic and Statistical Manual of Mental Disorders; a book commonly used by psychologists, psychiatrists and social workers in helping clients.

  2. Crossdressers/Transvestites: persons (most often males) who choose to dress and appear as a person of the opposite sex. This may or may not have anything to do with sex; each person is different here.

  3. Gender Benders: people who dress in the clothing of both sexes with no intent of looking like either sex specifically; they just like how it looks on them or how it feels. A girl wearing a double breasted suit is often gender-bending: looking for notoriety.

  4. Gender Blenders: much like gender benders, but usually keep it low key to avoid conflict with public. A boy wearing plain girl jeans would be blending.

  5. Intersexed: a person whose sexual organs are ambiguous from birth or has aspects of both sexes. This is a physical condition.

  6. Duo-Gendered: persons who believe they have aspects of both genders and will show different aspects of their gender based on internals states.

  7. Gender Queer: anyone not fitting into the above gender classes but do not consider themselves to be part of the absolute "binary gender" group.

  8. GRS (Gender Reassignment Surgery): Physical surgery to make the genitals of a person appear and work similar to the genitals of the opposite sex. This is far more advanced in 'converting' a male to a female as opposed to the opposite: removing is far easier than adding when it comes to human body.

  9. SRS (Sexual Reassignment Surgery): An alternative wording for GRS. They are the same thing, SRS is the older less used name.

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