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In this tutorial, Sean explains how to add watermarks to documents using PDF Exchange Editor. Watermarks can be used for various purposes such as document protection and ownership indication. To add watermarks, simply click on the organize tab, then select the watermarks drop down menu, and click add. You can choose to use either an image file or custom text for the watermark. Customize the text, font, and alignment options as desired. Macros can also be used for more advanced customization.