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In this video tutorial, Sean from Tracker Software teaches how to add watermarks to documents using PDF Exchange Editor. Watermarks can be used to protect documents, indicate ownership, and discourage counterfeiting. To add a watermark, go to the Organize tab, then select Watermarks and Add. You can choose to add either text or an image as the watermark. Customize the text, font, and alignment options to create the desired watermark. Macros can also be used when adding watermarks.