how do red sights work?

i purchased my 1st (BSA) red dot sight for a 2400KT i ordered. after mounting it on another rifle to check the sight picture, i noticed that the dot changes position depending on how i rest my cheek on the stock. (i didn't sight it in) does the dot have to be in the center of the sight picture to be on target? also, i was surprised to read the factory setting for parallax is 50yrds. i thought with a 1X sight it would be set much closer.
 
One thing to be weary about with red dot sights is astigmatism. One day I noticed my dot was no longer round it was sort of amoeba shaped. Since it was a vortex lifetime warranty I called to arrange a repair and was told I probably had a astigmatism. I had my wife check out the red dot and that confirmed my problem. I had my eyeglasses changed and now it’s ok. 
So if your Red dot becomes a red blob get your eyes checked.