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Anything you can see of another trader’s is a Reddit post or comment they published under their own name. Report sends it to your subreddit’s moderators without leaving the app.

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Where the button is

Pick a reason: Spam, Scam or fraud, Prohibited item, Harassment, or Something else. That is the whole form. There is no free-text box, so the reasons stay things a moderator can act on at a glance. On a trade card, which button you get depends on which side you are. The lister reports the negotiation comment, because the offerer wrote it. The offerer reports the listing post, because the lister wrote that. Each of you can report what the other published.

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What happens next

The report goes to the moderators of the subreddit you are in, alongside every other report they receive. Trade Post does not remove anything, hide anything, or decide anything: moderators do. You are not identified to the other trader.
Reporting through Trade Post is the same as reporting on Reddit, and reaches the same queue. It exists because Reddit’s own report button is not reachable from inside the app, and telling you to go and find the post again is not a reporting flow. Either route works.

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Your own content

There is no Report on something you wrote. You can delete your own post or comment on Reddit, which does more than a report would. Deleting the post behind a listing removes the listing from Trade Post too. See what is kept.

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Reporting Trade Post itself

A bug, or the app doing something it should not, is a different thing and goes somewhere else. Getting help covers where.