Most of the homeopathic medicines are prepared by diluting an active material by a process called potentisation/trituration. It retains essential quantities and removes toxic.
Homeopathic medicinal source
Most homeopathic medicines are made from a medicinal substance in double-distilled water; study shows water has many mysterious properties enabling the medicinal substance to solely-infiltrate the water. In addition, the medicinal solution is usually preserving in an 87% water/alcohol solution.
Potentisation | Trituration

Homeopathic medicinal substance is diluted, by 1 part of the original medicinal agent to 9 or 99 parts double-distilled water or alcohol or lactose. The mixture is then vigorously shaken or grinded. The resultant is then diluted again by 1:9 or 1:99 and vigorously stirred or grinded. This process of diluting and stirring or grinding is repeated 3, 6, 12, 30, 200, 1,000, or even 1,000,000 times. Stirring is performing for liquids and grinding is performing for solids.

It is inappropriate to say that homeopathic medicines are extremely diluted; they are not diluted but extremely "potentized”. Potentization refers to the specific process of sequential dilution with vigorous stirring. The theory is that each consecutive dilution with vigorous shaking/stirring infiltrates the new double-distilled water and imprints upon it the fractal form of the original substance used (fractal refers to the specific consecutively smaller pattern within a larger pattern)