There are many different types and grade of rum depends on location. The following summary is important terms that are have been used frequently:
Light rum – light rum can be called “silver” or “white” rum. Light rum is usually has clear color. Some light rum is filtered after aging to remove caramel color. Light rum is normally has some sweet taste. “Cachaça” is light rum from Brazil which is the main ingredient for popular Brazilian cocktail named “Caipirinha”. The majority of light rum comes from Puerto Rico. Light rum is normally used for cocktails.