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In this video tutorial, we learn how to add watermarks to documents using PDF Exchange Editor. Watermarks serve various purposes such as protecting documents, indicating ownership, and preventing counterfeiting. They can be added in text or image format. To add a watermark, go to the Organize tab, then click on the Watermarks dropdown menu and select Add. You can choose to use an image file or custom text for the watermark. The text preview pane allows you to see how the watermark will appear. Font and alignment options can be adjusted using the dialog boxes provided. Additionally, macros can be used when adding watermarks.