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In this tutorial by Tracker Software, Sean explains how to add watermarks to documents using PDF Exchange Editor. Watermarks can be used to protect documents, indicate ownership, and discourage counterfeiting. Watermarks can be added in text or image format. To add a watermark, go to the Organize tab, click on Watermarks, and then Add. You can use either an image file or custom text to create the watermark. Options to customize the font, alignment, and use macros are available in the Add Watermark dialog box.