The pirates operate within their rules. They can demand your cargo or money. Reasonable is to demand 1-5 millions, depending on your level and ship or demanding up to you entire cargo bay (that is the worst case, but you can try to lower that by negotiating AND NOT BY TRYING TO SHOOT HIM OR FLEEING). You can't hope you can fly anywhere without risking something. That's the thing with freelancer roleplay. You can't always be the winner.
A good roleplayer doesn't demand too much, because he plays pirate for roleplaying, not for making profit. Mining and Hauling are much more profitable. Keep that in mind when encountering a pirate.