"Futa" or "Futanari" is a stylized type of erotic animation or artwork in which female characters are depicted with male (instead of female) genitalia. It is common in erotic Japanese anime or "hentai" which is animated cartoon pornography.
A futa is a girl with a penis. A trap is a boy that looks like a girl. Official "Bako Ikporamee" of GameFAQs
This changed in the 1990s as drawn futanari characters became more popular in anime and manga. Today, the term commonly refers to fictional (drawn), female looking, hermaphrodite characters. Futanari is also used as the term for a specific genre within hentai related media ( pornographic anime or manga) that depicts such characters.
As it often depicts the use of male genitalia to initiate sexual intercourse on male characters, Futa is strongly indicative of latent, repressed homosexuality among its core audience. The sexual attraction to representation of male genitalia on female bodies suggests gender identity issues, gender confusion and innate homosexual preference.
According to Onnagata: A Labyrinth of Gendering in Kabuki Theater, futanari appears as a medical condition in a 12th-century scroll, The Book of Disease. Here, futanari describes a person with male and female genitals, which we might now call intersex.
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Today, futanari is used by anime and manga fans to refer to hentai about fantasy characters with male and female features as well as to the characters themselves.