On the same level as "nigger", and "cunt" for most people, though, like "dyke", some of the transgendered community are trying to reclaim the word, without much success.
2)A term used to insult a cissexual/cisgender person by implying that ze is a trans woman.
3)An affectionate term for any trans-identified person; language reclamation from 1st term. Most commonly used by young trans people, especially trans men & masculine genderqueers, among whom the "language reclamation" use started. Trans women have argued that this use of the term is appropriation, not reclamation, as the derogatory use of the term has almost exclusively focused on women, yet 'reclamation' efforts have largely been steered by men.
3)Hey, did you hear, the Tranny Roadshow's playing at Genderblur tonight!
I thought this was a queer/trans dance. There's, like, three trannies here. They don't even have gender neutral bathrooms!