Please help with this

Merry christmas to you all!
I am working on a project to make a DIY RailDriver, which is a controller for Train Simulator. I was aiming to do this with a USB Arcade Encoder, or an arduino. I need realistic buttons to suit the buttons in real life, Like an emergency stop. I am scared that if i used an emergency stop button ( which is toggle, not momentary ) it will hold down the emergency stop down until i release it. Same with another thing called DRA on the train. Lets say "Y" key on the keyboard toggles it on and off. In the cab, it is a toggle, pulled either in or out. On the keyboard, you just press "Y" to change its state. If I used a decoder. im scared whilst the button in real life is toggled, it will constantly hold down Y. I dont have much coding knowledge, only a bit of python, and have no idea what propper terms i need for the buttons, encoders etc.
Many thanks people,
Merry Christmas!

Suggest you start the project by drawing the panel with all controls and indicators on it.

Add a small amount of text beside each switch describing use.

Then show us a good schematic & image of your circuit.
Posting images:

suggest you read HOW TO USE THIS FORUM, it is a sticky post on top of every forum.
read #6 about subject lines.

Then test for results. post your subject line into google and see what you get for responses to your needs.

right now, you are not likely to get anyone who knows about RailDriver or Train Simulator to read your post.

I know nothing about Raildriver etc. but by definition and common usage an E-Stop stays down once pressed until it is pulled back up and the system is reset, many times by a separate reset button, the wiring is such that pushing an E-Stop down breaks a circuit so a broken wire or failure of the power wiring causes an all stop - - so I would put the E-Stop on a button that triggers the E-Stop (sounds like that would be a momentary button on the simulator) and the software seals the program in an E-Stop mode until a different button is pressed to reset things - don't use the same button to toggle the E-Stop on and off.

Good luck