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Sean from Tracker Software demonstrates how to add watermarks to documents using PDF Exchange Editor. Watermarks are used for various purposes such as protecting documents, indicating ownership, and discouraging counterfeiting. Watermarks can be added in text or image format. To add a watermark, click on the organize tab, then the watermarks drop down menu, and click add. You can use either an image file or custom text to create the watermark. The preview pane displays how the watermark will look. Font, alignment options, and macros can be customized.