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In this tutorial, Sean from Tracker Software explains how to add watermarks to documents using PDF Exchange Editor. Watermarks are useful for protecting documents, showing ownership, and preventing counterfeiting. Watermarks can be in text or image format. To add a watermark, go to the Organize tab, click on the Watermarks menu, and choose to add a watermark. You can use an image file or custom text for the watermark. You can customize the text, font, alignment, and use macros for added functionality.