As stated above, it is a sorry excuse for a cut off switch. Get a Blue Sea switch and be done with it.
http://www.bluesea.com/products/category/Manual_Battery_Switches
As far as what terminal it goes on, it all depends on what you are trying to do with it. To isolate a battery from the vehicle you would put it on the negative terminal (example-car battery). To isolate the battery from what it feeds, you would put it on the positive side of the battery (negative ground system). For a RV purpose most folks would want it on the positive side of the battery.