As you say, it should be fitted in the positive cable between the battery and the motor mover control box.
You should also have a suitably rated fuse in the same section of the circuit but , like the isolating switch, mounted outside the battery box. - the seperate section integrated into most caravan battery boxes where the 230v feed goes in is where most isolating switches are mounted but , if you can't, or don't want to put there, you can buy a dedicated isolator switch mounting box from Reich ..but that would mean cutting an extra hole in your pride and joy...
Any positive cable lying within the confines of the battery box should also be double insulated (heat shrink sleeving is perfect)
I serviced a caravan last week that had a standard 230v single gang light switch mounted inside the van being used as an isolator. Would have been interesting seeing someone trying to turn that off in a hurry.... :huh:
No excuses for not doing it properly
and it shouldn't affect the charging of the battery as the motor mover wiring is , or certainly should be, completely seperate from the domestic 12v positive supply from the battery.