Can someone articulate the difference between the two? Is there a difference?
i dont think there is a clear cut between the two. but based on implementation shortfall model. delay cost is the cost incurred when a trade was filled at some later time or date. opportunity cost is the cost incurred when a trade was canceled at some later time or date b/c of price movement.
Delay cost occurs - when say the trader puts in a buy limit order on thrusday to buy 100 shares below the ask and half the order does not get filled by the end of the day - the trader has incurred a delay cost on the 50, he/she could have put in a market order and gotten over with it. Then, assume the next day he/she puts in the trade at market price for the remaining 50 shares. Half of the trade fills the end of the day. Now, this remaining 25 shares, could have been filled on day one at market order and perhaps made money assuming prices went up. This opportunity was missed, thats why its called missed trade opportunity cost.