Dynamic characteristics of the short circuit mode are investigated using the Volume of Fluid (VOF) method. When the initial molten drop volume, contact area and wire feed rate are given, rate change of the molten bridge profiles, pressure and velocity distributions are predicted. The electromagnetic force with proper boundary conditions are included in the formulation to consider the effects of welding current. It is found that the molten metal is transferred to the weld pool mainly due to the pressure difference caused by the curvatures in the initial stage, and electromagnetic force becomes dominant factor in the final stage of short circuit transfer. Necking occurs at the contact position between the molten drop and weld pool, and the initial molten drop volume and welding current have significant effects on break-up time.