erm...both?
I'm not the greatest technician (or artist) but maybe this sketch can explain...
This may not be how it works exactly with the car fog light switch, but its a possibility.
The pictures are meant to be the fiesta light switch.
Coloured block is a metallic condictive strip on the barrel of the switch...
In the top pic, the metal strip is not conected to the lights as the switch is in the off position.
As you pull the switch out one click, the metalic strip moves and closes the plus where the fuse is to the front fog lights. They come on.
You pull the switch out a second click and the metal strip moves along more connecting all 3 points. The circuit for the front fog lights remains closed so the lights are on. The circuit for the rear fog lights is also closed and they come on too...
Not the best explanation but I hope it clears it up how it might work.