A known-to-be heterosexual male who has just performed an action one would consider to be homoerotic in nature, usually for the sake of comedy. So, in the moments following
said action, it is perfectly ok to call this person a "fag".
It is not ok to use the word "fag" in reference to an actual
homosexual, as it is not only quite
rude but also an incorrect use of the word.
Correct use:
Bob, Dave and some
friends are hanging out.
Bob grabs Dave's butt.
Dave: "Awe, you fag!"
Bob and
friends laugh.
Incorrect use:
Bob sees Elton
John kiss a man on tv.
Bob: "Awe man, what a fag!"
Dave: "No dude, Sir Elton is gay."
Bob: "Oh. My bad."