Catracho is a name for a male that has family from Honduras, OR born in Honduras. Just as a Catracha (with "a" at the end) is a female born in Honduras or with family from Honduras. For example, how Mexican Americans have their name which is Chicano, Hondurans have Catracho/Catracha.
Other things can be Catracho or Catracha. In a big type of Honduran music, punta music, people will say "Punta Catracha!!!" meaning Punta music from Honduras.
person A: Hey what is that guy over there with a blue white and blue flag with five stars in the middle?
Person B: that guy is a proud Catracho.
or...
Person A: Did you notice that All White T's Made from Kirkland are made in Honduras?
Person B: *Checks his T* Wow your right! I guess i got a Catracho T. Or Camisa Catracha.
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Another word used to define Hondurian
Mike: Hey bro what does Catracho mean
Jake: its another word use to define Hondurian
Mike: oh thanks , are you Hondurian?
Jake: yes in fact i am and i am very proud to be Hondurian!!!!
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