In this window, you will notice three options under Image Characteristics: namely Raster Background, Vector Background and Art Media Background. For creating a simple text watermark, it doesn’t really matter which you choose. I’m going to select Vector Background. If you like, take the information from the screenshot above and copy it into your window.
The Image Dimensions can be set to whatever you like. This determines how large your workspace is.
Regardless of what settings you decide, the only thing you need to be sure of is that the image background is transparent. To do this, check to see that the transparent box is selected, or, if you’re using Art Media Background, make sure the Enable fill color box is unchecked.
Once you have everything to your liking, click on OK.