Most mechanically held and Magnetically Latched contactors now a days are figured with a 2 wire control relay.
This control relay has a coil and 2 sets of contacts, 1 normally open and 1 normally closed.
The Common side of these 2 contacts are wired with a "Constant Hot".
The Loadside of these 2 contacts are wired to the Normally Open and Normally Closed "Latch and Unlatch" contacts ahead of the Latch and Unlatch Coils on the Lighting Contactor itself.
With a 2 Wire Control Module you only need 1 switchleg back from the controlling devices, whether that be a Photocell, Timeclock, 1 pole switch, or a combination of 3 way and 4 way switches with 1 common switchleg back to the coil on the 2 wire control module.
Sounds like yours doesnt have this and is going straight to the Latch and Unlatch coils on the contactor itself, and the momentary switch is used so you dont burn the latch and unlatch coils out of the contactor by keeping them energized.
The 2 wire control module is used on both Magnetically Latched and Mechanically Held Contactors to be able to utilize the single return switchleg and not have to use a momentary swtich with 2 switchlegs.
When a signal is applied to the coil on the 2 wire control module, the contacts on the 2 wire control module switch states, the Normally open contact closes and the Normally closed contact opens.
When the Normally Open contact on the 2 wire control relay closes it sends power to the "Latch" coil on the Lighting contactor through a Normally closed set of contacts on the Lighiting Contactor itself.
When the "Latch" Coil on the Lighing contactor energizes, the the armature is pulled in, closing the Line,Load contacts on the contactor, Opening the the "Normally Closed" "Latch" contact used to pull it in, voltage is removed from the coil, and the permanant magnet keeps it held in. The other "Unlatch" Aux Contact on the Lighting contactor which was originally Nomally Open, is now held closed by the Armature.
The Contactor stays in this position, Held by the permanant magnet until voltage is removed from the coil on the 2 wire control module.
When Voltage is removed from the 2 wire control module the contacts on the module switch back to their normal state. The Normally Open returns to N/O and the Normally Closed returns to N/C. The Voltage going through the now Normally Closed contact on the 2w Control Module now goes through the "Held Closed Unlatch" Aux contact on the Lighting contactor to reverse the poarity of the magnet and the Contactor Drops out.
When it drops out, the "Unlatch" contact on the Lighting Contactor opens up, removes the voltage off of the coil on the Lighting Contactor, The "Latch" Contact on the Lighting Contactor closes and it waits on another signal from the 2 wire control module to start all over again.