1.When a person’s sexual orientation is different from gender identity. Sexual orientation is a person's physical, emotional or romantic attraction to another person, while gender identity is about one's own sense of self, according to Glad, an anti-discrimination organization. Transgender people may be straight, lesbian, gay or bisexual. For example, a person born with male genitalia may transition to being female but may be attracted to females. In this case, the person may identify as lesbian even though she was born with male genitalia.