How to make terminator transparent?

Right click anywhere in the terminator window and choose "Preferences", your desired option should be found under "Profiles"->Background":

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Edit your config file in $HOME like this (i.e. vi) :

vi $HOME/.config/terminator/config

insert into [profiles] [[default]] the transparency settings:

background_darkness = 0.97 #(or anything else between 0-1)
background_type = transparent

this works for me.

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