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In this tutorial, Sean from Tracker Software demonstrates how to add watermarks to documents using PDF Exchange Editor. Watermarks are 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 the watermarks drop-down menu, and select add. You can use an image file or custom text to create the watermark. You can customize the text, font, alignment, and use macros to personalize the watermark.