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In this tutorial by Tracker Software, Sean explains how to add watermarks to documents using PDF-XChange Editor. Watermarks are useful for protecting documents and indicating ownership. To add a watermark, go to the Organize tab, click on Watermarks, and then Add. You can choose between using an image file or custom text for the watermark. You can customize the text, font, and alignment options, and use macros to personalize the watermark.