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"It does what it says on the tin"
You select the cargo you want to trade. ie, coal/ore/grain/logs etc; for whatever cargo you want.
It's not hard and it's not rocket science either.
Look at the first image, above, and you can see what it does.
Click on the Trading Post and then click on Configure and select the mode needed
ie Trade then select the goods to "Trade" [Cargo A] for the "goods" needed [Cargo B] this will give you what you need = Goods "In" will give you Goods "Out"
Simples
Input = goods "delivered" to the relevant station/depot with a Trading post attached to it, and Output means goods picked up to ship to wherever it's needed.
Warehouse = Storage. Goods to be used for later use in the game.